New acquisition to drive growth

Sports Entertainment Group operates the SEN sports radio network across Australia, and also has operations in digital media, live events, television syndication, and talent management.

Bell Potter said the company offers an attractive proposition for advertisers.

As they said:

SEG has curated a portfolio capable of delivering a whole-of-sport strategy targeting a valuable cohort for advertisers at the top of the funnel, then additional value as content filters through operating channels/segments; this operating model delivered an underlying EBITDA contribution margin of 20.4% in FY26 versus group underlying margin of 14.8%.

Sports Entertainment Group also recently finalised the takeover of New Zealand group MediaWorks for $107.6 million.

The company said when announcing the takeover that they expected the acquisition to be materially earnings per share accretive before synergies were factored in.

Synergies were estimated at about $5 million per year.

Sports Entertainment Group said MediaWorks was New Zealand's number-one audio business, with about 59% audience share in the 25-to-54 demographic.

Sports Entertainment Group Chief Executive Officer Craig Hutchinson said after the deal was finalised:

Today marks a landmark moment for Sports Entertainment Group. Completing the acquisition of MediaWorks which is New Zealand's #1 audio business transforms SEG into a truly scaled, trans-Tasman media group reaching more than 5 million listeners across Australia and New Zealand. This is exactly the kind of strategically important and value driving transaction we have been building toward. Both businesses are performing strongly into Q1 FY27. We are already seeing the benefits of the combination in our advertiser conversations and digital platform integration planning. The MediaWorks management team, led by CEO Wendy Palmer, has been outstanding throughout this process and we look forward to building something exceptional together.

Media shares looking cheap

Bell Potter said in its research note on the company that it expected the company to generate a compound annual growth rate of 13% in EBITDA from FY26 to FY29.

The company was expected to benefit from NZ$50 million in tax losses held by MediaWorks, as well as a healthy calendar of major sporting events over the medium term.

Bell Potter also expected the company to restart dividend payments at the end of FY28.

The broker has a price target of 45 cents on Sports Entertainment Group shares, compared to 26.5 cents currently.

If achieved, this would constitute a 69.8% return. The company is valued at $84.8 million.

The post Top broker says this ASX stock could rise 70% appeared first on The Motley Fool Australia.

Investors aren't just looking for yield – but for those companies that can deliver it consistently going forward too. That is pushing up the prices of the largest income stocks to where now their dividend yields are unappealing.

Take Sydney Airport Holdings Ltd (ASX: SYD) as an example. The owner of Sydney Airport has seen its share price soar to $7.34 – up 27% in the past year, and the dividend yield sink to 3.9% and that's unfranked.

Toll road owner and operator Transurban Group (ASX: TCL) is another. The share price is up 22% in the past 12 months, pushing down the dividend yield to 3.93%, and that's only partly franked.

Here are 9 companies currently paying dividend yields of 10% or more…

Source: S&P Global Market Intelligence

The problem with a number of the companies in the table above is that they are unlikely to be able to continue paying out dividends at their current levels because their earnings are declining. That includes the three free-to-air broadcasters Prime Media, Nine Entertainment and Seven West.

IPE Limited is an interesting company, investing in a number of private equity funds and actually paying out 11 cents in dividends and capital returns to shareholders in the 2016 financial year. At the current price of 23 cents – that's the equivalent of an astonishing yield of 48.9%. The company says it expects to continue paying out capital returns in the 2017 financial year too.

PTB Group specialises in aircraft engine services in Brisbane. The share price appears cheap and the company paid a fully franked dividend of 5 cents last financial year. However, investors should note that there is a fair degree of risk involved with PTB – thanks to its $13.7 million of debt – and the company issued $700,000 worth of shares to pay the cash portion of the June 2016 dividend.

One thing to note too is that many of the companies in the table pay fully franked dividends – taking the post-tax yield to more than 14%. Considering the long-term average annual return from the share market is around 10%, owning a basket of big dividend payers could easily see investors thrash the market.

Foolish takeaway

For those investors willing to do further research, the 9 companies listed above could be worthy of adding to a diversified portfolio for their income generating ability.

The post 9 dividend stocks with yields of more than 10% appeared first on The Motley Fool Australia.