We're all streaming Hamilton on Friday with the Disney+ debut of the Broadway smash musical. Alexander Hamilton happens to grace the face of our $10 bill, so let's explore some compelling stocks that you can buy for a Hamilton or less per share.
CenturyLink (LUMN 3.52%), Sirius XM Holdings (SIRI 0.25%), and Zynga (ZNGA) are some of the stocks with single shares trading for less than that $10 bill in your pocket. Let's see why -- as Lin-Manuel Miranda would sing -- you shouldn't be throwing away your shot.
Telcos aren't fashionable investments beyond their chunky dividends these days, but that's just fine for CenturyLink and its eye-popping 10.2% yield. CenturyLink's prospects for growth are dim as it it faces challenges on the residential and commercial fronts.
It has cut its payout in the past, and did so last year. However, the $1.1 billion in distributions it's currently expected to shell out this year should be more than covered by the $3.1 billion in free cash flow that it was forecasting earlier this year before withdrawing its guidance in May.
CenturyLink isn't a growth stock. Organic revenue has declined by less than 4% in the past three quarters, but that's actually its best showing in more than three years. CenturyLink is also still capable of pulling off a big deal. On Tuesday, it announced a second task order from NASA to manage its voice traffic, as well as providing network connectivity for more than 15 space centers and regional research facilities.
Sirius XM Holdings
Satellite radio is still a growth industry. Sirius XM had a record 34.8 million total subscribers at the end of March, gaining 143,000 more new accounts than it lost through the first three months of the year. Sirius XM has been consistently profitable over the past decade, making it one of the market's biggest winners since bottoming out in early 2009.
Auto sales are drying up, and that's a long-term concern since satellite radio is consumed largely in cars and trucks. However, Sirius XM has taken strong steps to ready itself for the digital future by acquiring Pandora last year and making a $75 million investment in SoundCloud earlier this year.
We went from a high-yielding stock in CenturyLink to a steady grower with a small payout in Sirius XM Holdings. Let's wrap things up by going for a fast-growing mobile gaming company in Zynga. If you spend any time on your smartphone, you've probably dabbled with some of Zynga's sticky casual diversions. It's the publisher of Empires & Puzzles, Merge Dragons!, and Words With Friends. If those games don't ring a bell, Zynga's long track record of hits stretches back to the early days of social gaming with FarmVille and Mafia Wars.
Growth is on a tear. Revenue soared 52% to $404 million through the first three months of the year. Bookings improved by 18% to $425 million. Its larger legacy titles are still gaining traction, and it's had a hit with some of last-year's debutantes including Merge Magic! and Game of Thrones Slots Casinos.
Social gaming has proven to be a pandemic-proof growth industry, entertaining us during a lull in real-world diversions. Zynga boosted its guidance in May, something that we didn't see a lot of companies do this year.