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High Yielding Frontier Communications and Verizon -- Strong Dividend Plays for 2012


Published on 2012-01-06 05:22:11 - Market Wire
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January 06, 2012 08:16 ET

High Yielding Frontier Communications and Verizon -- Strong Dividend Plays for 2012

The Bedford Report Provides Equity Research on Frontier Communications & Verizon Communications

NEW YORK, NY--(Marketwire - Jan 6, 2012) - The telecom industry has posted tremendous revenue growth in recent years as new technologies drive the sector. LTE deployments and 3G and 4G expansion have boosted the top lines of several U.S. telecom companies, while the hefty dividends many telecoms pay continues to attract safe-haven investors. The Bedford Report examines the outlook for companies in the Telecom sector and provides research reports on Frontier Communications, Inc. (NASDAQ: [ FTR ]) and Verizon Communications, Inc. (NYSE: [ VZ ]). Access to the full company reports can be found at:

[ www.bedfordreport.com/FTR ]
[ www.bedfordreport.com/VZ ]

According to a recent report from the market research firm, Infonetics, telecom capital expenditures (CAPEX) were up 6% to $311 billion in 2011, while revenue was up 8% to $1.86 trillion. Stephane Teral, principal analyst for mobile and FMC infrastructure at Infonetics Research claims that the "near-6% increase in global telecom carrier CAPEX we expect in 2011 over 2010 is due in large part to AT&T's ramping LTE deployments, HSPA+ upgrades, and investments in WiFi hotspots for traffic offload."

In the long term, Research and Markets reports that revenues across all segments within the U.S. telecom industry presently total almost $750 billion and the firm says that revenues are expected to grow about +3.9% per year through the year 2020 to reach almost $1.2 trillion in revenue.

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 stock reports and industry newsletters.

Telecoms are well known for paying some of the strongest dividends on Wall Street. Presently Verizon Communications pays an annual dividend of $2.00 per share for a yield of around 5 percent. Verizon Chief Financial Officer Fran Shammo said during a webcast of an investor conference earlier this week that strong fourth quarter sales brings Verizon Wireless "extremely close" to its target for 11 million iPhone sales in 2011. Shammo also said the company ended the year with a backlog of 120,000 iPhone orders. On the downside, Shammo said that Verizon Wireless expects to report a decline of up to 6 percentage points in its fourth quarter gross profit margin as the company's pension contribution obligations would rise to $1.2 billion in 2012 from about $400 million in 2011.

Currently Frontier pays an annual dividend of 75 cents for an enormous yield of more than 14 percent. Frontier Communications Corporation provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States.

The Bedford Report provides Market 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 ]


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