Like the brilliant yellow sale stickers in stores, high-yielding stocks tend to catch the eye. ITV (LSE:ITV) is one of FTSE250 this always reminds me of it.

Maybe it’s nostalgia, because I’m elderly enough to remember such classics Heartbeat AND A touch of frost. As a child, I often stayed with my grandparents on Saturday evenings, when, for example, Gladiators AND Stars in their eyes will be televised on Channel Three (i.e. ITV).

Of course, all this has changed. If I showed my daughter (who is now about the same age as I was then) today’s ITV program, she probably wouldn’t recognize much.

However, if I asked her if she had heard about Netflix‘S Stranger things Or Wednesdayshe would look at me like I was a mannequin. He is currently obsessed with an animated film KPop Demon Hunters. Was this produced by ITV or available on ITV? No, it was Netflix again.

Of course, one may ask whether this is an correct – or even fair – comparison. But I think so. If ITV has no cultural relevance for younger generations (who now spend much more time consuming content from YouTube, Netflix and social media), where does that mean in the long run?

A tale of two businesses

Currently trading at 82p, the share price has fallen by almost 70% in a decade.

In my opinion, ITV is one of those cases where investors like one part of the business but not so much the other. This prevents enough people from investing, resulting in the disappointing long-term performance described above.

It reminds me of this W. H. Smithwhich until recently operated both high street shops and tourist shops. The former (which it has now sold) has suffered long-term decline, while the latter is seen as having long-term growth potential (due to increasing global travel).

Pets at home is another example where a veterinary business is growing but retail is struggling.

In the case of ITV, this is the broadcasting arm and the Studios arm. The former is in its decline phase. As evidence, take a look at a recent TouchPoints survey which found that British adults now spend more time on their phones than watching TV. And they don’t watch many movies/series on their phones.

However, ITV studios stand to benefit from this fragmented media landscape. As he not only produces content for ITV, he also produces high quality content for other streamers including Netflix, AmazonAND Disney.

This gives Studios secular, long-term growth potential.

Potential sale

Therefore, I believe ITV can continue to pay regular dividends. It earns money from linear TV advertising, digital advertising streaming via ITVX and its Studios content site.

So with the stock trading at just 9.8 times forward earnings and a dividend yield of 6.1%, I see the temptation here.

Recently, there have also been rumors about the possibility of selling the broadcasting business. A specific offer could cause the stock to skyrocket.

Passive income

However, when I look at the dividend forecast, I no longer have this temptation. Analysts do not forecast a future augment in payouts, and perhaps even a slight decline.

After considering the situation, I intend to continue to look for other opportunities to earn high-yield passive income. Currently there are several of them.