A.H. Belo: The Yield Is Not Worth The Risk

Overview A.H. Belo (AHC) is a news and information publishing company, which includes the operations of The Dallas Morning News and other daily news publications. Like many stocks in this industry, it has faced a number of difficulties, which has affected its bottom line. The company has recorded negative earnings in 8 out of its last 10 quarterly reports and declines in revenue (compared to same period prior year) over the past 8 quarters.
The company continues to make adjustments to counteract declining print and advertising revenue such as increasing digital subscriptions and lowering costs. However, these attempts have not yet been able to have a strong enough impact to stop or limit the bleeding.
The stock will appear on many investors' radar due to its attractive dividend yield, currently at 6.74%. However, the poor overall fundamentals of the company do not make the yield worth it in my opinion when compared to the high risk associated with this stock.
Price Performance
A high dividend yield is not that attractive when you continue to lose more in terms of stock price. Whether you sell or hold, seeing significant declines in price is a problem, especially if there is no strong indication that this trend is going to reverse. And in the case of A.H. Belo, there has been no such indication over the past 10 years. Looking at the charts below, you can see that the stock has declined in price over the past 10 years, and has still significantly underperformed the... Read more

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