In the video below, Fool analyst Eric Bleeker discusses why the best news for Frontier investors in each earnings report is no news. Eric rehashes some of the more notable statistics from the company's earnings report. However, in the end, Eric notes that the major problem with Frontier is that investors buy the company for its dividend; yet any dividend payments that long-term investors counted on were wiped out when the stock cratered in 2011. Instead, if Frontier can reach a point where its share price treads water, and it executes on its strategy, investors can collect their dividend, yielding 9% a year.
From that perspective, Frontier's recent ho-hum earnings were a major win for the company. As long as investors in Frontier don't mind the stock price staying near current levels, they should be happy collecting the company's huge dividend. To see Eric's full thoughts, watch the video below.
When it comes to dividend yields, you won't find many higher than Frontier Communications. While its juicy dividend is tempting, every Frontier investor has to understand that it's not a sure thing. A huge acquisition has transformed the company forever. Will the move bear fruit, or are investors destined for another disappointing dividend cut? In this premium research report on Frontier Communications, we walk you through all of the key opportunities and threats facing the company. Better yet, you'll receive a full year of updates to boot. Click here to learn more.
The article Frontier Earnings: No News Is Great News originally appeared on Fool.com.
Eric Bleeker, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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