Science & Technology
Science and Technology
Science and Technology 
Tue, April 5, 2011
Growth Strategies Keep Frontier and AT&T's Dividends on the Upswing
NEW YORK, NY--(Marketwire - April 5, 2011) - With the markets showing continued signs of volatility, investors are once again looking for safe havens. Dividend paying stocks traditionally get attention during hectic times in the market as investors are more likely to believe in companies that have an established record of stability and real earnings power. Additionally, when interest rates get as low as they currently are, the return on dividends can far exceed that of bonds. One of the more popular dividend plays is via companies in the telecom sector. Even during the recession, while many companies cut their dividend payments, most telecoms did not. Several telecom companies offer dividend yields exceeding 6%, and most can maintain these hefty dividends due to their stable revenues. The Bedford Report examines the outlook for companies in the Telecom sector and provides research reports on Frontier Communications, Inc. (
[ www.bedfordreport.com/2011-04-FTR ]
[ www.bedfordreport.com/2011-04-T ]
AT&T currently pays an annual dividend of $1.72. The dividend yield is about 6.1%, comparable to that of close competitor Verizon.
AT&T made headlines last month when it agreed to buy T-Mobile USA from Deutsche Telekom for $39 billion in cash and stock. The deal would create America's largest mobile phone company with AT&T adding about 34 million customers. Sprint Nextel Corporation formally announced its opposition to the proposed acquisition, urging the US Government to block the deal on anti-competitive grounds.
The Bedford Report releases regular market updates on the telecom sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at [ www.bedfordreport.com ] and get exclusive access to our numerous analyst reports and industry newsletters.
Frontier pays an annual dividend of $0.75 for a massive yield of around 9.3 percent. Frontier said it earned $46 million, or 5 cents per share, in the fourth quarter, up from $4.4 million, or 1 cent per share, a year ago. The company paid a total of $186.3 million in dividend in the fourth quarter for a dividend payout of 88 percent of free cash flow. Frontier has started strong with its acquired Verizon properties and is on track to deploy 85% of lines by the end of 2013. The company raised its synergies expectation to $550 million from $500 million.
The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: [ http://www.bedfordreport.com/disclaimer ]