2 Dividend Stocks Crushing the S&P 500 in 2026 That Still Yield Over 3.5%
Lamar Advertising and Outfront Media dominate the great outdoors, at least when it comes to advertising.
Overview
Lamar Advertising (NASDAQ: LAMR) and Outfront Media (NYSE: OUT) are the two largest publicly traded billboard real estate investment trusts (REITs). Lamar operates more than 359,000 advertising displays in 45 U.S. states and Canada. Outfront operates a total of 552,877 advertising displays in the United States and Canada, with most of them being transit displays on subways, buses, and commuter rail stations, though it also has 38,240 billboards.
Both companies are seeing increased revenue from digital billboard advertising. So far this year, Lamar's shares are up more than 24%, while Outfront's stock has jumped more than 37%. The use of digital billboards has transformed the business. Lamar and Outfront are fundamentally real estate companies operating in vertical land. When they convert a traditional static vinyl billboard into a digital billboard, the economics change dramatically.
Instead of renting a billboard or sign to one advertiser for a month, a digital board can rotate eight to 10 distinct advertisers every few seconds. Because companies don't have to pay a crew to physically drive out and paste new vinyl sheets, the incremental cost of adding a new digital ad is virtually zero.
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Originally published at www.fool.com.