SOURCE: Five Star Equities

Five Star Equities

June 01, 2012 08:20 ET

Telecom Companies May Struggle to Maintain High Dividend Pay-Outs

Five Star Equities Provides Stock Research on CenturyLink and Windstream

NEW YORK, NY--(Marketwire - Jun 1, 2012) - Dividends have been gaining popularity among investors as treasury yields and interest rates are at record lows. The telecom industry is highly regarded among dividend investors, as several domestic telecom operators have dividend yields exceeding 5 percent. Five Star Equities examines the outlook for companies in the Telecom Industry and provides equity research on CenturyLink, Inc. (NYSE: CTL) and Windstream Corporation (NASDAQ: WIN).

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But a recent report released by Standard & Poor's states that telecom companies may have hard time maintaining their high yields. "Returning cash to shareholders through dividends and share buybacks and the pressure to satisfy equity investors lessens their ability to pay back debt and maintain or reduce leverage," said Standard & Poor's credit analyst Allyn Arden in the report. "These companies may need to adopt more conservative financial policies and reduce leverage to be able to maintain their current ratings down the line," added Mr. Arden.

Five Star Equities releases regular market updates on the 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 free at and get exclusive access to our numerous stock reports and industry newsletters.

CenturyLink is the third largest telecommunications company in the United States. The company provides broadband, voice, wireless and managed services to consumers and businesses across the country. It also offers advanced entertainment services under the CenturyLink Prism TV and DIRECTV brands. The company currently offers investors an annual dividend of $2.90 per share for a yield of 7.39 percent.

Windstream is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas. Windstream has more than $6 billion in annual revenues. The company currently offers investors an annual dividend of $1.00 per share for a yield of 10.73 percent.

Five Star Equities provides Market 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. Five Star Equities 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.

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