4 media stocks to own today

The media sector has produced more than its fair share of billionaires!

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Media has long been a sector for creating extensive wealth. One needs to look no further than the list of wealthiest Australians to see the benefits investments in the media sector have brought. Billionaire James Packer's family once owned a previous version of Nine Entertainment Co Holdings Ltd (ASX: NEC), billionaire Kerry Stokes controls Seven West Media Ltd (ASX: SWM) and Rupert Murdoch is a familiar name around the globe thanks to News Corp (ASX: NWS).

Put bluntly, businesses in some industries have a harder time earning a buck than in other industries. While it's been suggested by investor Warren Buffett that overall the airline industry has lost money, I'd hazard a guess that the media industry has overall made significant profits. With that in mind, after reviewing the domestic media sector, here are four appealing media companies.

Cheap

Enero Group Ltd (ASX: EGG) is a marketing and communications company which stumbled after expanding too quickly. The company appears to have stabilised and set itself up for a more sustainable course going forward.

High Yield

Prime Media Group Limited (ASX: PRT) operates regional television and radio stations. According to Morningstar Research, the broadcaster is forecast to maintain its full-year dividend at 7.3 cents per share in the current financial year. With the shares trading at $1.03, this equates to a juicy fully franked dividend yield of 7.1%.

Quality

Amalgamated Holdings Limited (ASX: AHD) operates across a number of areas including hotels, cinemas and resorts. The stock ticks a number of boxes – a solid balance sheet, defensive stream of earnings, a history of growing its revenues and profits. It has a forecast fully franked dividend yield of 4.8% and a price-to-earnings ratio of 16.4.

Growth

REA Group Ltd (ASX: REA) owns and operates a number of websites in Australia, Europe and Hong Kong. The best known of these is realestate.com.au. While REA's dominant market position in Australia will ultimately slow its domestic growth, REA's move into overseas markets makes its growth profile look strong for a number of years.

Foolish takeaway

Buying media stocks might not make you a billionaire, but investing in a sector known for its more successful business models is certainly a good place to start.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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