Sunday, January 15, 2012

Frontier Communication (FTR)

Here is a new dividend play idea. Frontier is a provider of Fixed line Phone and Internet access in the rural areas of America. Actually since completing the buying of Verizon Rural business they are the biggest provider now. Things haven't been easy with the transition. Thing is at current prices there dividend is over 14% Can they continue to pay this high yield? I for one sure hope so. Hopefully they can for the next year or two until the company turns things around. Than the stock price will go up and the yield will go down. Either way it's a win win for us shareholders. Biggest risk is the can't keep paying the dividend and have to lower or eliminate it. It's a big risk but you are payed highly to take it. Good luck investing. Tony

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