Is Cineplex a great stock to buy now?

Cineplex (TSX:CGX) remains one of the top stocks of interest among Motley Fool investors and it’s easy to see why. The economy is in recovery mode. Doors are opening once more. And that includes the doors to theatres. Even more than that, some of the peers of Cineplex stock have seen a surge in not just revenues but also share price.

What does Cineplex do?

Cineplex Inc., together with its subsidiaries, operates as an entertainment and media company in Canada and internationally. It operates through four segments: Film Entertainment and Content, Media, Amusement and Leisure, and Location-Based Entertainment. The company engages in theatre exhibition and theatre food service activities.

Can Cineplex stock fight back against the pandemic?

In the case of Cineplex stock, this is the only thing it can do to fight back in today’s environment. Being able to pick up theatre popcorn through meal delivery services and even limiting cash burn simply won’t cut it. Pre-pandemic, revenue hit $1.6 billion in 2019’s second quarter.

Does Cineplex (CGX) pay a dividend?

There is no current short interest data available for CGX. Cineplex is a leading dividend payer. It pays a dividend yield of 5.32%, putting its dividend yield in the top 25% of dividend-paying stocks. Cineplex does not have a long track record of dividend growth. The dividend payout ratio of Cineplex is 78.26%.