Alexander Eule, Barron’s analyst, recommended World Wrestling Entertainment  (WWE) today based on the following:

a. In February, the company boosted the quarterly dividend for non-McMahon-family shareholders by 50%.  Yet, shares are down 20% from a 52-week high in April.

b. The dividend comes on top of decent prospects for earnings growth. For the period between 2006 and 2011, WWE forecasts average annual earnings growth of 12%.

c. WWEE faces competition from increasingly popular Ultimate Fighting Championship. Broader categories like videogames also compete for the hearts and minds of WWE’s fan base of mostly boys and young men. But WWE, formerly known as the World Wrestling Federation or WWF, has proved its staying power over the decades, despite ebbs in popularity.

d. WWE’s chief financial officer, told Barron’s Online, “We’re committed to the current level for the long-term.”

e. Outside North America is where WWE has the greatest upside. The segment comprised a quarter of revenue in 2007. And international revenue and profits increased by 41% and 38%, respectively, in the first quarter. The company says its Latin American events attracted sellout crowds that averaged 11,000 fans.

Conclusion: With a yield of 9%, WWE investors can find enjoyment of their own, according to Eule.

Track Alexander Eule’s picks at:

http://www.trackthepros.com/categories.php?category_id=203