Title: Outfront Media: A High-Yield Dividend Stock with a $23 Billion Secret Weapon
If you’re on the lookout for a high-yield dividend stock, the real estate sector, particularly real estate investment trusts (REITs), is a great place to start. REITs are known for their generous dividend yields, as they are required by law to distribute at least 90% of their profits as dividends.
With share prices in the REIT sector currently down due to surging interest rates, now is an opportune time for dividend investors to consider investing in REITs. The Federal Reserve’s forecast of falling interest rates later this year is expected to attract investors back to dividend stocks like REITs, potentially boosting their share prices.
Among the various choices in the REIT sector, Outfront Media (NYSE: OUT) stands out as a high-yielding stock with a unique offering. As one of the largest owners of outdoor advertising properties, including digital and traditional billboards, Outfront currently boasts a dividend yield of 7.6% and has seen its stock price nearly double since October.
Outfront is poised to benefit from a cyclical tailwind, driven by expectations of falling interest rates and a rebound in the advertising market. The company’s digital revenue is on the rise, accounting for a significant portion of its total revenue. With the digital out-of-home (DOOH) advertising market projected to reach $48.9 billion by 2029, Outfront is well-positioned to capitalize on this growing opportunity.
The company’s recent expansion of programmatic advertising in New York City’s transit system highlights its commitment to innovation in the digital advertising space. By partnering with companies like The Trade Desk and Freshpet, Outfront is enhancing the value of its DOOH properties and attracting advertisers looking for targeted and dynamic advertising solutions.
Investors considering Outfront Media can also benefit from its appealing 7.6% dividend yield, making it an attractive option for income-seeking investors. With the potential for growth in both its digital business and the broader advertising market, Outfront Media could be a winning investment over the coming years.
Before making any investment decisions, investors should conduct their own research and consider the advice of financial experts.
