How Does Frontier’s Dividend Yield Stack Up against Peers?
Frontier’s dividend yield
Dividend yield determines a company’s annual dividend per share relative to its market price per share. It denotes the amount of cash an investor receives for every dollar that is invested in the company’s equity. Investors want high dividend yield stocks, as they bring stability to their income. As of September 20, 2017, Frontier’s (FTR) dividend yield was ~20.1%, which was greater than the same metric for CenturyLink (CTL) at ~11.7%. Meanwhile, Windstream’s (WIN) dividend yield was ~30.8% as of the same date.
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Shareholder returns and stock trends
On September 20, 2017, Frontier’s stock was trading at $12.00. The stock was trading 8.7% below its 20-day moving average of $13.15, 14.8% below its 50-day moving average of $14.09, and 28.5% below its 100-day moving average of $16.78.
Relative strength index
On September 20, 2017, Frontier had a 14-day RSI (relative strength index) reading of 34. Meanwhile, CenturyLink and Windstream had a 14-day RSI reading of 33 and 45, respectively. It’s important to note that in the integrated US telecom market, the 14-day RSI reading for Verizon (VZ) and AT&T (T) were 62 and 57, respectively.
Usually, if a company’s 14-day RSI level is less than 30, it denotes that the stock has been oversold. However, a 14-day RSI level more than 70 denotes that the stock has been overbought.