2 Dividends the Market Loves to Hate

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The following video is part of our "Motley Fool Conversations" series, in which consumer-goods editor and analyst Austin Smith and industrials editor/analyst Brendan Byrnes discuss topics around the investing world.

In today's edition, Austin and Brendan talk about two dividend stocks the market loves to hate: Safeway (NYS: SWY) and Frontier Communication (NYS: FTR) . These two companies have a high level of shares held in short. Austin agrees with the short case against Frontier and believes that its business model is inherently weak in the long run. However, the Safeway short interest doesn't seem justified to him. Despite Frontier Communications' high dividend yield, he's recommending investors look elsewhere today and aim for a wireless telecom play instead.

Most people come to Frontier Communications because of its high dividend, but as we've pointed out, it's highly unsustainable. Instead, you should try to buy top-notch dividends for the long haul. You can uncover 11 incredible ones in our special free report: "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

At the time this article was published Austin Smith, Brendan Byrnes, and The Motley Fool has no positions in the stocks mentioned above. 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 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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