Dividends and Summer Movie Blockbuster

Entertainment in our society is big business whether it is sports, movies or other leisure activities. Each of the areas have seasons where they typically generate more money than others. In the movie industry, summer has traditionally been when people went to the movies more. Although a great story made into a great movie will bring in movie viewers no matter the budget, the summer traditionally has the movies with the greatest advertising dollars attached to them. The wonderful thing about the summer blockbuster is if you go to the movies, like the movie, see the theatre is full of people and the movie is on the highest gate receipts, that can translate into high stock prices for the companies which produced the movie.

When you watch the movie previews, for the ones you like note who produces the movie. In this fashion, not only are you watching a movie you are gathering intelligence about your potential investments. There are many magazines which focus on the stars, if you own shares in an movie company, some of them are working for you. You maybe similar to me in that recently as the pages of the 50 hottest stars article were turned, fewer of names had recognition value, however there were some movie previews that have sparked an interest in seeing. This only means more research has to be done both on the stars and the financial reports to see which company would be the best one.

Linking to dividend paying stocks, the movie industry has been operating for a long time and it will continue to operate a long time for a great story in a movie will always be popular. Every year, the industry changes, different themes pop up, the costs are higher (so are the rewards), distribution channels change but the industry still keeps going. Sometimes it is easier to watch the movies, enjoy them and not have to worry about whether summer blockbuster will come or not. The alternative is to invest in good companies with a near monopoly consistently turning out profits and expecting to raise their dividends.

There are more questions than answers, till the next time – to raising questions

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