WINDSTREAM HOLDINGS INC. $9.69 - Nasdaq symbol WIN

WINDSTREAM HOLDINGS INC. $9.69 (Nasdaq symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 602.7 million; Market cap: $5.8 billion; Price-to-sales ratio: 0.9; Dividend yield: 10.3%; TSINetwork Rating: Average; www.windstream.com) provides telephone and other communication services to 3.7 million consumers and businesses, mainly in rural parts of the U.S.

Following its November 2011 purchase of PAETEC Holding Corp., which sells telecommunication services to businesses, Windstream now gets two-thirds of its revenue from corporate customers.

However, the company continues to face strong competition, which is luring away consumer and business clients. That’s why Windstream’s revenue fell 2.1% in the first quarter of 2014, to $1.46 billion from $1.50 billion a year earlier.

Windstream is cutting jobs in response. The savings should help it keep paying quarterly dividends of $0.25 a share, for a 10.3% annualized yield.

The company paid $12.1 million in severance payouts and other restructuring costs in the latest quarter, which cut its earnings by 69.2%, to $16.0 million from $52.0 million. Per-share earnings fell 77.8%, to $0.02 from $0.09, on more shares outstanding.

Windstream is a hold.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.