Behind Frontier’s Dividend Yield



Frontier’s dividend yield compared with peers

Dividend yield measures a company’s annual dividend per share compared with its price per share. The dividend yield tells us the amount of cash an investor is receiving for every dollar invested in the company’s equity. Investors look forward to high dividend yield stocks because they tend to bring stability to their income.

As of February 1, 2018, Frontier’s (FTR) dividend yield was ~29.8%, which higher than CenturyLink’s (CTL) dividend yield of ~12.2% but lower than Windstream’s (WIN) dividend yield of ~35.9% as of the same date.

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Shareholder returns and stock trends

On February 1, 2018, Frontier’s stock was trading at $8.08. The stock was trading 3.2% above its 20-day moving average of $7.83, 1.3% above its 50-day moving average of $7.98, and 14.7% below its 100-day moving average of $9.47.

Frontier’s scale compared with peers

As of February 1, 2018, Frontier had a market capitalization of ~$0.6 billion. In the US wireline space, CenturyLink and Windstream had market capitalizations of ~$19.2 billion and ~$0.3 billion, respectively.

The market capitalizations of AT&T (T) and Verizon Communications (VZ), two integrated US telecom giants, were significantly higher than those of US wireline players at ~$240.4 billion and ~$221.5 billion, respectively, as of February 1, 2018.

For ongoing updates on Frontier Communications (FTR) and other key players in the telecommunications industry, keep checking in with Market Realist’s Tech and Telecom page.


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