This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 High-Quality, Low-Risk Stocks

Stock quotes in this article: INTC, NSC, TWX, GD, HUB.B

Time Warner

Time Warner (TWX) is one of the premier media content providers in the world, operating in three segments: filmed entertainment, TV/cable networks and publishing. Among its highly recognizable brands are HBO, Cinemax, CNN, TBS, TNT, Sports Illustrated, People, Fortune, Warner Brothers and New Line Cinema. Long known for one of the worst mergers and acquisitions of all time with the original America Online ( AOL (AOL) was spun off in 2009). The company has had to trim itself down by cutting debt, focusing on cash flow and spinning off companies.

Time Warner Cable (TWC) was spun off in its entirety in 2009; prior to that it was a tracking stock of which Time Warner held an 84% stake. As part of that spinoff, Time Warner offloaded a considerable amount of long-term debt (an estimated $20 to $22 billion) onto Time Warner Cable's balance sheet. Now the more svelt Time Warner can operate as a cash cow, paying off more debt, repurchasing stock and paying a dividend. I expect a dividend increase in early 2012.

The rapid emergence of digital delivery of content will no doubt favor the content providers in the future, which will work to Time Warner's advantage.

Time Warner reported earnings of 79 cents, which was better than consensus estimates of 76 cents. This resulted in upward full-year EPS consensus revision of 1 cent for the company from 11 analysts. For the fourth quarter, analysts expect Time Warner to earn 86 cents, which is unchanged from a month ago but 2 cents greater it was two months ago.

Time Warner, one of the highest-yielding media stocks, shows up on a recent list of 5 Media Companies With the Most to Win and Lose.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs