SOURCE: The Bedford Report

The Bedford Report

December 14, 2010 08:46 ET

Telecom Dividends Continue to Attract Attention

The Bedford Report Provides Analyst Research on Frontier Communications & Vodafone

NEW YORK, NY--(Marketwire - December 14, 2010) -  Dividend paying companies are attracting a lot of attention right now. Investors usually count on dividend paying stocks during hectic times in the market believing in the company's security and real earnings power. Following last month's $600 billion "QE2" announcement -- and rumblings of a possible QE3 next year -- 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. One of the more popular dividend plays is via companies in the telecom sector. The Bedford Report examines the outlook for companies in the Telecom sector and provides research reports on Frontier Communications, Inc. (NYSE: FTR) and Vodafone Group PLC (NASDAQ: VOD). Access to the full company reports can be found at:

www.bedfordreport.com/2010-12-FTR

www.bedfordreport.com/2010-12-VOD

Several telecom companies offer dividend yields exceeding 6%, and most can maintain these hefty dividends due to their stable revenues.

Frontier pays an annual dividend of 0.75 for a massive yield of around 8 percent -- close to triple that of a ten year bond. In its most recent quarter Frontier's revenues surged more than 165% year over year to $1.402 billion. The company says it generated adjusted free cash flow of $339.1 million, up 182% year on year while paying out $186.3 million in dividend in the third quarter.

The Bedford Report releases regular market updates on the telecom sector 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 www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

When Vodafone announced earnings for the first half of the 2010 last month, the company said that going forward it was focused on improving shareholder returns through dividend payouts. Vodafone issued a dividend per share growth policy of at least 7% per annum over the next three years.

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.

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