Small telcos with different growth plans

Windstream is spinning off some of its real estate assets, while Frontier (see box) recently expanded by acquisition. Both approaches should let these telecoms maintain their above-average dividend yields.

However, their heavy focus on rural areas, plus the rising cost of expanding and upgrading their… Read More

WINDSTREAM HOLDINGS INC. $10 – Nasdaq symbol WIN

WINDSTREAM HOLDINGS INC. $10 (Nasdaq symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 602.8 million; Market cap: $6.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 10.0%; TSINetwork Rating: Average; www.windstream.com) gets 73% of its revenue by selling high-speed Internet and other communication services to 357,700 businesses.

The… Read More

Spinoff lifts Windstream

WINDSTREAM HOLDINGS INC. $11 (Nasdaq symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 602.7 million; Market cap: $6.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 9.1%; TSINetwork Rating: Average; www.windstream.com) gets 73% of its revenue from high-speed Internet and business telecommunications. It also sells regular phone… Read More

WINDSTREAM HOLDINGS INC. $11 – Nasdaq symbol WIN

WINDSTREAM HOLDINGS INC. $11 (Nasdaq symbol WIN; Income Portfolio, Utilities sector; Shares outstanding: 602.7 million; Market cap: $6.6 billion; Price-to-sales ratio: 1.2; Dividend yield: 9.1%; TSINetwork Rating: Average; www.windstream.com) gets 73% of its revenue from high-speed Internet and business telecommunications. It also sells regular phone… Read More

These two have limited growth prospects

These two telecom firms are expanding through acquisitions. The cash flow from their new operations will help them maintain their high dividends. However, they’re both heavily reliant on traditional telephone services, which limits their growth potential.

FRONTIER COMMUNICATIONS CORP. $5.95 (Nasdaq symbol FTR; Income Portfolio, Utilities… Read More

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… Read More