In September 2018, S&P Dow Jones Indices and MSCI implemented a major restructuring of their sector profiles, leading to the creation of the communication services sector. The sector comprises the major telecom giants, as well as companies that were previously grouped with consumer discretionary and information technology. Today, communication services is a dynamic sector that is home to some intriguing dividend plays, including media and advertising companies. Our latest communications reaffirmation doesn’t carry the same brand recognition as sector heavyweights such as Meta (formerly Facebook) or Disney, but it still provides investors with plenty of potential upside.
The advertising industry has undergone profound shifts in the age of digitization. The onset of COVID-19 appears to have accelerated that trend, as more companies look to digital platforms to convey their brand identity. It’s estimated that, in 2020 alone, digital ad revenues were valued at $500 billion.
Our pick has been around since way before the digital revolution. Founded in New York in 1930, the company restructured in 1960 and has since become one of the ‘Big Four’ marketing agencies in the United States alongside WPP, Publicis, and Omnicom. Income investors have been attracted to our pick’s respectable dividend yield and its increasingly dependable track record of delivering higher payouts.
Its next ex-dividend payment is estimated to be June 1, 2022 (estimated date).
You can check out the Best Communications Dividend Stocks List
