S&;P Say Telecoms May Have Hard Time Maintaining High Yields
June 01, 2012 08:20 ET
S&P Say Telecoms May Have Hard Time Maintaining High Yields
Five Star Equities Provides Stock Research on Alaska Communications and Frontier Communications
NEW YORK, NY--(Marketwire - Jun 1, 2012) - Dividends have been gaining popularity among investors as treasury yields and interest rates are at record lows. The telecom industry is highly regarded among dividend investors, as several domestic telecom operators have dividend yields exceeding 5 percent. Five Star Equities examines the outlook for companies in the Telecom Industry and provides equity research on Alaska Communications Systems Group, Inc. (
Access to the full company reports can be found at:
[ www.FiveStarEquities.com/ALSK ]
[ www.FiveStarEquities.com/FTR ]
But a recent report released by Standard & Poor's states that telecom companies may have hard time maintaining their high yields. "Returning cash to shareholders through dividends and share buybacks and the pressure to satisfy equity investors lessens their ability to pay back debt and maintain or reduce leverage," said Standard & Poor's credit analyst Allyn Arden in the report. "These companies may need to adopt more conservative financial policies and reduce leverage to be able to maintain their current ratings down the line," added Mr. Arden.
Five Star Equities releases regular market updates on the Telecom Industry 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.FiveStarEquities.com ] and get exclusive access to our numerous stock reports and industry newsletters.
Alaska Communications Systems Group is a leading provider of high-speed wireless, mobile broadband, Internet, local, long-distance and advanced broadband solutions for businesses and consumers in Alaska. The Alaska Communications network includes advanced broadband and voice networks and the most diverse undersea fiber optic system connecting Alaska to the contiguous United States. The company currently pays an annual dividend of $0.20 per share for a yield of 10.5 percent.
Frontier Communications offers voice, broadband, satellite video, wireless Internet data access, data security solutions, bundled offerings and specialized bundles for residential customers, small businesses and home offices, and advanced business communications for medium and large businesses in 27 states. The company currently offers an annual dividend of $0.40 per share for a yield of 11.17 percent.
Five Star Equities 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. Five Star Equities 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: [ www.FiveStarEquities.com/disclaimer ]