How Does Frontier’s Dividend Yield Stack Up against Peers?
On September 20, 2017, Frontier’s stock was trading at $12.00.
Analysts’ consensus for Frontier’s 12-month target price is $19.48, which means a potential return of 62% from the closing price of $12.00 as of September 20, 2017.
As of September 20, 2017, AT&T (T) was the largest US telecom carrier by market capitalization.
Frontier (FTR) continues to invest in capital expenditures (or capex) to enhance its network.
As Frontier offered faster speeds and new offers, the company’s broadband net additions improved sequentially in the California, Texas, and Florida (or CTF) markets during 2Q17.
Frontier (FTR) believes that its video services could act as a growth driver in the near future.
During the Goldman Sachs Communacopia Conference on September 12, 2017, Perley McBride, Frontier’s chief financial officer, discussed the company’s full-year 2017 guidance.
In 2Q17, AT&T reported a quarterly dividend of $0.49 per share, a 2.1% rise from the same quarter in the previous year.
As of September 18, 2017, AT&T was trading 1.5% below its 100-day moving average.
In recent quarters, AT&T (T) has been focused on protecting its customer base as well as reducing churn to record-low levels.
Over the past few quarters, AT&T (T) has been experiencing customer losses in the US pay-TV market. In 2Q17, AT&T lost 156,000 satellite video subscribers.
Nine of the 30 analysts tracking AT&T (T) stock have rated it a “buy,” 20 have rated it a “hold,” and one has rated it a “sell.”
As of September 18, 2017, AT&T’s (T) market capitalization was ~$229.8 billion, making it the largest US telecom company in terms of market capitalization.
AT&T (T) believes that the Time Warner (TWX) deal is more compelling today, and the financial benefits of the deal are limited, but the strategic implications are more clear.
During the Goldman Sachs Communacopia Conference on September 12, 2017, AT&T’s chief executive officer was confident that the acquisition of Time Warner would close by year-end.
According to RootMetrics’ 1H17 RootScore report, at the national level, AT&T came in second place in five of six network performance categories.
Acquiring Time Warner will make AT&T among the most heavily indebted companies in the world. AT&T is anticipated to have debt of more than $180.0 billion if it acquires Time Warner.
Telecom stocks, meanwhile, haven’t seen similar returns compared to tech stocks.
Meanwhile, Apple alone has a market cap of over $820 billion, while Apple and Alphabet together have a market cap of ~$1.5 trillion.
Of the 26 analysts tracking Charter stock, 17 have rated the stock as a “buy,” while nine have rated the stock as a “hold.”