A 12% Yield That Just Keeps Getting Bigger

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The following video is part of our "Motley Fool Conversations" series, in which Motley Fool senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss emerging trends in technology.

In today's edition, Jeremy and Eric look at the telecom sector and its recent struggles. Yields are on the rise, and that's not necessarily a good thing, as collapsing share prices are the catalyst behind these rising yields. The main fear in the industry is that a slowdown could crimp access to cheaper debt that these telecoms rely on for their debt-heavy capital structure. Eric reminds investors not to chase the highest yield alone, but to manage risk and create a basket of high-yielders that can survive a downturn and protect principal.

For those on the quest for great new dividend stock ideas, we invite you to take a look at the dividend stocks in a free report from The Motley Fool called "13 High-Yielding Stocks to Buy Today." Hundreds of thousands have requested access to this special free report, and now you can access it today at no cost. To get instant access to the names of these 13 high yielders, simply click here -- it's free.

At the time this article was published BothEric BleekerandJeremy Phillipsown shares of no companies listed above. The Motley Fool owns shares of Intel.Motley Fool newsletter serviceshave recommended buying shares of AT&T and Intel and creating a diagonal call position in Intel. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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