Market Overview

Five Communications Companies Yielding More Than Seven Percent

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In terms of stocks, a management team's commitment to dividend payments might be a viewed as a positive signal, implying that executives believe their firms will continue to generate cash.

Of course, this commitment might also be a negative signal, as it could imply that the firm does not have viable investment opportunities to pursue with its cash.

Regardless, companies that have a high dividend yield can interest traders and investors alike. The following is a list of five communications companies with dividend yields above 7 percent:

CenturyLink (NYSE: CTL): Shares of this phone, television and internet provider have enjoyed a rally around six percent year-to-date. This increase falls within an approximate four percent decline over the past twelve months.

On June 14, CenturyLink announced a $233 million networking solutions deal with the Social Security Administration. According to the company, this was the largest ever telecommunications contract from the federal government. On the day of this announcement, shares of CenturyLink rose around one percent.

Pitney Bowes (NYSE: PBI): This communications software and equipment provider has seen its share decline around 37 percent over the last 12 months.

Since early July 2007, shares of the company have fallen approximately 68 percent. Over this same period, however, the company increased its quarterly dividend four times.

On June 22, the company announced that it would partner with digital information management company Systemware to develop a secure digital communication service.

Frontier Communications Corporation (NASDAQ: FTR): This communications service firm has seen its shares rally around 12 percent since early June.

In February, the company declared a quarterly dividend of $0.10, a reduction from a previous dividend of $0.1875.

R.R. Donnelley & Sons (NASDAQ: RRD): In May, this commercial communications printing company announced that it would acquire EDGAR online, a regulatory reporting system provider, for approximately $70.5 million. Since then, the shares of R.R. Donnelley have rallied approximately 10 percent. However, shares are still down around approximately 20 percent year-to-date.

Windstream Corporation (NASDAQ: WIN): This phone, internet and television provider formed in 2006 when Alltel spun off its landline phone services (which then merged with Valor Communications Group).

Shares of Windstream declined around 26 percent over the past 12 months, as the company reported earnings that missed analyst estimates for each of the three most recent quarters.

Disclosure: At the time of publishing, the author does not own shares of any companies mentioned in this post.

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