2 Dividend Stocks Crushing the S&P 500 in 2026 That Still Yield Over 3.5%
2026-07-15 04:30
•James Halley •The Motley Fool
•••• •• Axe Capital view
Billboard REITs Outshine S&P 500 — Any SA Angle?
Lamar and Outfront Media soar with strong dividends, but South African investors should watch the rand and local ad markets closely.
Lamar Advertising and Outfront Media have been cracking the market in 2026, with their shares jumping 24% and 37% respectively, thanks to the shift toward digital billboards and solid cash flows from local clients. Their dividend yields above 3.5% are rare find these days, especially with growing free cash flow backing them. For South African investors, these global names highlight how stable local advertising demand can fuel steady income, a theme worth watching on the JSE. But the rand’s strength or weakness against the dollar (USD/ZAR) will heavily impact any offshore exposure. On the local front, advertising-dependent companies like Media24 or eMedia Holdings might echo these trends, though with more volatility and risk. I’d hold off chasing offshore billboard REITs directly but keep an eye on the rand’s swings. If the rand weakens sharply, it may hurt offshore returns. Conversely, a stable or stronger rand could enhance them. this is just my opinion and not financial advice
Wait for clearer USD/ZAR direction before adding US billboard REIT exposure; instead, consider selective exposure in local media counters but remain cautious on rand-driven volatility.
- LAMR
- OUT
- USD/ZAR
- Sharp rand depreciation hurting offshore returns
- Volatility in South African ad spend impacting local media stocks
5/10
Lamar Advertising and Outfront Media, the two largest billboard REITs, are outperforming the S&P 500 in 2026 with shares up 24% and 37% respectively. Both companies benefit from digital billboard conversion economics and rely heavily on local business clients, providing stable cash flows. They offer dividend yields above 3.5%, with Outfront showing stronger revenue and cash flow growth despite higher debt levels.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: James Halley
Categories: Rates, Equities, Earnings, Capital Returns
Tickers: LAMR, OUT
Sentiment: Positive - Stock up 24% YTD with strong fundamentals: 4.03% dividend yield, revenue growth of 4.5% YoY, free cash flow up 15.3% YoY, and AFFO per share up 7.5% YoY. Payout ratio expected to improve to 74.4% with estimated AFFO guidance. Benefits from digital billboard conversion and 80% local business client base providing stable revenue. Stock up 37% YTD with exceptional growth metrics: 3.62% dividend yield, revenue growth of 9.9% YoY, free cash flow up 124% YoY, and AFFO per share up 143% YoY. Outperforms Lamar in growth rates and trades at reasonable valuation. Recommended by The Motley Fool. Headwinds include higher debt load and greater exposure to national ad spending volatility.
Keywords: dividend stocks, REITs, billboard advertising, digital advertising, local advertising, cash flow, dividend yield
Insights:
- LAMR: Positive: Stock up 24% YTD with strong fundamentals: 4.03% dividend yield, revenue growth of 4.5% YoY, free cash flow up 15.3% YoY, and AFFO per share up 7.5% YoY. Payout ratio expected to improve to 74.4% with estimated AFFO guidance. Benefits from digital billboard conversion and 80% local business client base providing stable revenue.
- OUT: Positive: Stock up 37% YTD with exceptional growth metrics: 3.62% dividend yield, revenue growth of 9.9% YoY, free cash flow up 124% YoY, and AFFO per share up 143% YoY. Outperforms Lamar in growth rates and trades at reasonable valuation. Recommended by The Motley Fool. Headwinds include higher debt load and greater exposure to national ad spending volatility.