NEW YORK ( TheStreet) -- While I enjoy writing and debating about my more speculative positions, dividend-paying growth stocks comprise a majority of my portfolio. I own a few stodgy stocks, but, for the most part, you cannot call my dividend payers boring. In fact, you might classify some as controversial.
Over the weekend,
an excellent article
making the bull case for
(TWX - Get Report)
, some TWX bulls see 25% upside in the stock, thanks to the company's aggressive dividend and share buyback programs, key franchises such as
and the deals it has in place to air major professional sports via its
division. While I love the 3% yield and HBO, the sports angle stands at the fore of my bullishness.
Let's take something
highlighted a step further. The premium sports programming gives TWX leverage as it negotiates rates with cable companies. In other words, Time Warner can make a cable company pay up for less desirable programming out of fear it will lose access to key sports content.
As television continues to morph into an on-demand and cross-platform product, the time something airs becomes meaningless. That said, most people tend to adhere to a schedule for big sporting events. It's not quite the same to have to hide from the score for a period of time and watch a rebroadcast of something that already took place. This type of appointment viewing is scarce. The companies that control it and can leverage it via increasingly creative, demographically relevant (and multiplatform) advertising and delivery methods will not only sustain, but prosper.
I would love to see Time Warner make an aggressive run at a regional powerhouse such as
Madison Square Garden
to add diversity and heft to an already diverse and hefty stable. To take control of key regional networks (the family MSG television networks), several major professional teams (including the Rangers and Knicks) and important regional venues (the Garden), Time Warner would have to answer to regulators because, after all, this is not Canada.
Every time I hear a conservative radio host or somebody on
refer to Canada as "socialist," I spit Labatt Blue through my nose. If there's a socialist republic in North America (and it's evident to anybody who took Intro to Political Science that there is not), it's the U.S.A. Just ask
can tell you a thing or two about our capitalist nation's refusal to let the free market do its thing. But please, allow me to digress ...