Top Dividend Stocks: How To Get Free Movie Tickets…

| May 18, 2011 | 0 Comments

How would you like a great stock for your portfolio and free movie tickets for the rest of the year?

I’ll show you how to get both in a minute, but first, let me give you a little background.

The other day I went with a few friends to see Fast Five with Vin Diesel and Paul Walker.  (By the way, if you like action you’ll enjoy this movie.)  But before we could get to the ticket window, we heard two spine-tingling words… “Sold out.”

Putting our back up plan into action, we bought tickets for the last show of the night.

While waiting for our show, we went next door for a quick meal.  All through dinner I kept thinking of the millions of moviegoers spending money on tickets, popcorn, candy, and so on.  The more I thought about it, the more certain I was movie theaters must be raking in profits.

So I decided to do a little research.

I found out the movie industry sees revenue exploding this year.  In the last three weeks, Fast Five has generated over $400 million worldwide.  And with films coming out like The Hangover 2, Green Lantern, and Kung Fu Panda 2, the money’s about to roll in.

I kept digging to see if there was a way to grab a share of this exciting business.

It just so happens there’s a way.  The largest movie chain in the country is a public company, it’s called Regal Entertainment (RGC).

Regal shows movies on over 6,000 movie screens in 37 states and the District of Columbia.  In 2010, a mind-boggling 224 million people walked through their doors.

How does Regal have so many customers?

The company has an average of twelve screens in every location, while the competition has an average of just six screens.  More screens mean more people spending money at Regal theaters.

The company also attracts customers with enticing discount programs.

If you’re a member of AARP (American Association of Retired Persons), you can enjoy savings on popcorn and soda up to 50%! For the rest of us, the theater has a “Crown Club” program offering discounts on tickets and concessions.

No wonder RGC is putting so many butts in the seats.

But of course, the main draw for moviegoers is the quality of the movies.

And in the first quarter, Hollywood dropped the ball.  They put out a number of films no one wanted to see.  Box office revenues plunged 20% across the board.  As a result, RGC’s first quarter earnings missed analyst’s expectations.

But that’s all about to change.

You see, Hollywood is on track to release a potential blockbuster film every week.  With so many great films coming out, you know box office sales are going to soar.  And RGC is poised to rake in a big chunk of this cash.

What’s more, they’ve found a new way to boost ticket sales.

They just increased the total number of 3-D screens from 527 to 2,256.  That’s a huge change in strategy.  The company’s clearly confident 3-D movies are the wave of the future.  And the best part is the average ticket price to a 3-D movie is $3.00 higher than a regular ticket.

If you haven’t done so yet, check out a movie in 3-D.  It’s really cool seeing rocks, arrows, and other things flying at you.  It’s definitely a lot more exciting seeing a movie this way.

Now, getting back to those free movie tickets.

RGC shares pay a hefty 6% dividend yield.  With the money they send you from dividends, you can enjoy your favorite movie… and still have money left over for popcorn and soda.

What’s more, the dividend keeps increasing.  RGC just raised its dividend by 15%!  And on occasion, they even surprise shareholders with a “special dividend”.  It happened a few months ago when shareholders received a “bonus” of $1.40 per share!

With millions of moviegoers lining up to see the latest blockbusters, this is a great time to pick up shares of RGC.  Plus, you can use your dividends to buy all the movie tickets you want.

Consider adding shares of Regal to your portfolio today!

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Category: Stocks

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The Dynamic Wealth Report works with a number of staff writers and guest experts who specialize in everything from penny stocks to ETFs to options trading. These guest analysts post under the 'staff writer' moniker for ease of use.

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