This Dividend Cut Makes Sense

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The following video is part of our "Motley Fool Conversations" series, in which analyst Paul Chi and senior analyst Matt Argersinger discuss topics across the investing world.

In today's edition, Matt and Paul discuss Frontier Communications' recent dividend cut. Companies usually aren't willing to cut their dividends out of fear that investors will flee the stock. This time around, however, it was a good move. Now that Frontier pays a more reasonable level of its free cash flow to its investors, people no longer have to worry about a looming dividend cut.

If you're interested in some of these dividends on your quest for high-yielding stocks, The Motley Fool has compiled a special free report outlining our 11 top dependable dividend-paying stocks. It's called "Secure Your Future With 11 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

At the time this article was published Matt Argersinger has no positions in the stocks mentioned above. Paul Chi has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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