World Wrestling Entertainment: A Good Stock for Tough Times?

It actually doesn't seem bad. The one-year chart is pretty good. Now, keep in mind, you could scrutinize that graphic and come to the conclusion that it's merely an average chart; or, you might even believe that it signals that the stock will either go down or simply be dead money for a while.

Here's the thing about WWE: It pays a nice dividend. As of last Friday's closing price, the yield was not too far under 9%. Impressive, wouldn't you say? And while I can't necessarily state unequivocally that it is the best dividend idea out there, the company has done all right so far in supporting the payout. As I mentioned back in May, cash flow generated from the business is doing okay in terms of its ability to satisfy the quarterly distributions (you do have to keep a careful eye on that cash-flow statement, I must emphasize).

So long as the dividend yield is high, and the stock stays relatively stable, WWE remains, in my mind, an attractive equity to use as an income vehicle as the market sendures future sessions of volatility. It is higher-risk, I should note (after all, interest in wrestling does go through cycles). Nevertheless, those who have held shares of the company over the last twelve months have fared relatively well.

Disclosure: I don't own any company mentioned; positions can change without notice.