David Abella’s Dividend and Income Fund told Barrons last week that Lamar is one of his five top picks.  Here’s what he hold Barrons:

• “The digital era has made it difficult in some cases to get consumer eyeballs and on the road is a very captive audience.”

• The stock is trading at 13 times funds from operations (earnings before depreciation and amortization) versus a norm for 17 times for the REIT industry.

• Lamar management has signaled that they are going to increase the dividend which is currently 4.4%.

Insider’s take: “The digital era has made it difficult in some cases to get consumer eyeballs and on the road is a very captive audience.”  The Feel The Real Campaign pays dividends.  Insider notes that Lamar has less leverage than Clear Channel Outdoor or Outfront so has room to raise the dividend without upsetting creditors.

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