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Even with the FTSE 100 climbing to near-record highs, there stay loads of high-yield revenue alternatives for buyers to discover in 2025. That is very true when venturing past large-caps and searching in the direction of the smaller gamers like Attain (LSE:RCH).
The media and publications enterprise has had a tough time of late, dropping by nearly 30% within the final 12 months. However regardless of the downward trajectory of the inventory worth, the corporate has continued to keep up its dividend.
Which means buyers now have the possibility to begin incomes a juicy 10.7% dividend yield. And at in the present day’s worth, a £500 funding snaps up 726 shares, unlocking a £53.29 passive revenue within the course of.
So is that this a chance value taking? Or are buyers vulnerable to being lured right into a entice?
What’s happening with Attain?
As a fast crash course, Attain is the enterprise behind over 120 nationwide and regional newspapers such because the Mirror, Categorical, and Day by day Star. Throughout each its print and digital channels, the agency’s content material is learn by roughly 70% of the British inhabitants, with over 100 million followers on social media worldwide.
Print & publishing is a difficult enterprise to be in. Readers are more and more shifting away from conventional magazines and newspapers in favour of free on-line articles. And consequently, Attain’s print-based income streams, together with promoting, are steadily declining. In reality, associated income throughout the primary half of 2025 dropped by 15.4%.
A few of this influence is being offset by new income streams from serving digital commercials. However with the buyer spending surroundings tightening, digital advert spending continues to be mushy. And so, with a shrinking prime line, pre-tax income are down 18% thus far this yr.
For sure, this additionally places pressure on the group’s free money move and, in flip, dividends.
A hidden gem?
Regardless of the difficult surroundings that Attain is having to navigate, it’s not all unhealthy information.
Administration is absolutely conscious of the shifting panorama and is actively investing in its synthetic intelligence (AI) and e-commerce capabilities to offset the declining efficiency of its legacy print enterprise. This additionally contains additional diversifying the income stream by ramping up premium subscriptions to supply way more predictable and constant money flows.
Moreover, as beforehand talked about, the group has been holding a good grip on its bills. In reality, even with the elevated Nationwide Insurance coverage contributions, the agency’s working prices really fell through the first half of 2025. And by restructuring varied departments, Attain has began eliminating duplication of labor, permitting extra assets to be allotted to rising its viewers, with 6% progress already secured thus far this yr.
If the agency can proceed to hit these operational milestones and ship additional efficiencies, the enterprise might be well-positioned to capitalise on the eventual restoration of the digital promoting market. And on this situation, its 10.7% yield would look way more sustainable.
The underside line
Attain seems to have strong restoration potential. I wish to see extra progress earlier than contemplating shopping for any shares in the present day. However it’s undoubtedly an revenue inventory that buyers ought to regulate, I really feel.
