Author: Sean Riskowitz on June 14, 2010
Telecomms firm Frontier Communications (FTR) is yielding 12% in dividends. Despite the great results history, the future of the dividend is not a sure thing.
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Comments
M Artin
June 14, 2010
I predict they'll stop paying this dividend afte rthe deal with VZ goes through and all the VZ shareholders dump their free FTR shares. Just a thought.
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Brian
June 15, 2010
One thing to consider about the people going from landline to mobile phones is that FTR concentrates on rural areas, which don't have as reliable of cell phone service as urban areas. Also, people in these areas tend to be more loyal to companies than their urban counterparts. This will slow the erosion of FTRs landline business. Conversely, rural areas are underserved with broadband and people sign up as soon as they can once broadband hits their area. FTR has a nice niche carved out for itself.
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Thom
June 16, 2010
FTR has already declared their intention to reduce the dividend rate to 75% of its current amount, after closing the deal with Verizon. $.75/year instead of $1.00. Still a very good return (as long as the stock holds its value) but this should have been reported in this article, which sounds a lot like a sales pitch to me. I've owned FTR for about 20 months but will probably sell after the last $.25 dividend is paid.
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sagitarius84
June 17, 2010
Thom,
What do you expect from a person who doesn't own dividend stocks but writes about them simply to get traffic to their website?
Telecom stocks are very risky, and their yields are simply unsustainable. High payout rations, high competition and the death of the landline are just a few of the problems there...
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chuck ross bachelorboycar@yahoo.com
January 19, 2011
FTR,ithink line will be here for a long time!!!!!!!!!! Cell phones have their place but, not in a moving car. Laws will be written soon. May I suggest that you look into Europ countries and see what they have developed in what moves to make for the better ment of ftr And i WOULD APPREICATE YOUR REPLY cHUCK THE DIVIDEND IN FTR HAS DROPPED FROM 12 TO 7% DOES THAT MEAN ftr is going out of busines sooner than some predicted?
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