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.
According to Barron's, some TWX bulls see 25% upside in the stock, thanks to the company's aggressive dividend and share buyback programs, key franchises such as HBO and the deals it has in place to air major professional sports via its Turner division. While I love the 3% yield and HBO, the sports angle stands at the fore of my bullishness.
Let's take something Barron's 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 (MSG) 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 Fox News 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 General Motors (GM). AT&T (T) and T-Mobile 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 ...
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV