Windstream’s Dividend Still Looks Safe

Article Excerpt

WINDSTREAM CORP. $11 (New York symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 449.9 million; Market cap: $4.9 billion; WSSF Rating: Average) provides local telephone and other telecommunication services to over 3 million customers in 16 states. Most of its customers are in rural areas. In 2007, earnings per share fell 4.9%, to $0.98 from $1.03 in 2006. These figures exclude the recent sale of the company’s directory business, as well as unusual items. Revenue rose slightly, to $3.26 billion from $3.22 billion. Windstream is doing a good job hanging onto customers in the face of strong competition from cable and Internet-based phone services. The company is now bundling high-speed Internet and satellite TV services with its regular phone services. Special bundles are also helping it attract more small business customers. That should help it maintain its high $1.00 dividend (9.1% yield). Windstream is a buy. buy…