SOURCE: The Bedford Report

The Bedford Report

November 08, 2010 11:25 ET

How Stable Are These Telecom Dividends?

The Bedford Report Provides Analyst Research on AT&T & Frontier Communications

NEW YORK, NY--(Marketwire - November 8, 2010) -  Dividend paying companies are attracting a lot of attention right now. Following last week's $600 billion "QE2" announcement, consensus is that interest rates will remain at exceptionally low levels for the foreseeable future. When interest rates are low investors tend to put their money into dividend paying stocks. Conversely, when interest rates rise, an investor would be more likely to place their cash into money market funds, for example. An increasingly popular dividend play is via the Telecom Industry. The Bedford Report examines the outlook for companies in the Domestic Telecom industry and provides research reports on AT&T, Inc. (NYSE: T) and Frontier Communications Corporation (NYSE: FTR). Access to the full company reports can be found at:

www.bedfordreport.com/2010-11-T

www.bedfordreport.com/2010-11-FTR

Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. Several telecom companies offer dividend yields exceeding 6%, and most can maintain these hefty dividends due to their stable revenues.

In AT&T's most recent earnings report it posted an impressive 2.8% year-over-year growth in revenues while net income in the quarter jumped 286.6% year over year to $12.3 billion. Presently AT&T pays an annual dividend of 1.68 for a yield of around 5.7%.

The Bedford Report releases regular market updates on the domestic telecom industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Frontier pays an annual dividend of 0.75 for a massive yield of around 8.3%. In its most recent quarter Frontier generated adjusted free cash flow of $134.2 million, up 33% year-over-year while paying out roughly $78.3 million in dividend during the most recent quarter.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer.php.

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