GameStop is still paying a nice dividend

Anybody out there still own GameStop stock?

Come on … I know there are at least a few of you. I own a share. Sure, it only makes up 0.14% of my portfolio, but I do have a share. I’m not particularly proud of that fact, but, considering it’s such a small position, I’ll at least admit to it.

GameStop has been in an absolute free fall for what seems like a long, long time. That’s not breaking news. The bulk of its cash comes from selling new and used video games and, well, that’s not going so well these days. It’s been hanging on for dear life pretty successfully for the last three months, down less than 1%, but the 23% dip over the course of the last year is what’s been scaring people away.

The company is aggressively shifting its business model, moving away from games toward collectibles and hardware, but I don’t know if GameStop will be able to complete the transformation before the competition swallows it up.

I think GameStop has a puncher’s chance, I really do, but I’m not holding my breath.

I sold off most of my position when Microsoft announced it would be offering consumers a Netflix-like service for games – the writing was pretty much on the wall at that point – but I didn’t want to totally sever ties with the company. Why? Well, the dividend, of course.

GameStop was one of two companies to pay me Thursday – my fourth straight day with at least one dividend. Monday, Tuesday and Wednesday featured a few, too. The combined $0.45 brought my September total to $27.96 and my 2017 total to $227.73.

GameStop

GameStop (GME) has its set of well-documented issues. It hasn’t stopped slinging cash at investors, though, which is saying something. The company passed along $0.38 for the one share I own. Its earnings per share were down 18.52% last quarter verses the same quarter the previous year, but it’s still cash-flow positive with a meaty 7.56% dividend yield. The payout ratio, miraculously, is pretty low, too (45.65%).

Daktronics

Daktronics, which paid me a $0.07 dividend Thursday, is one of my dark-horse dividend picks. It has a smaller market cap ($602.12M) than pretty much all the other companies in my portfolio, but has all kinds of room for growth. Its scoreboards and other electronic displays are all over the place.

It has a dividend yield of 2.80%, no debt and a 4.88% profit margin.

March on!

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