• Twitter
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Feature Article

Telecom: Get Big or Go Home

By Roger S. Conrad on Mar. 10, 2019

Sweet yields can bring sour consequences. That’s a lesson I learned once again, after recommending high yielding CenturyLink Inc (NYSE: CTL) in last month’s Feature article.

The company was on the Endangered Dividends List for shrinking revenue. Nonetheless, hefty free cash flow and attractive broadband assets convinced me the dividend could be maintained. In fact, that’s what management asserted right up until it announced a 54 percent dividend cut on February 13.

The company couched the reduction as a capital management decision to pay off debt faster. The real reason, however, is buried in the information the company released, prior to the discovery of accounting weakness that’s delayed the filing of its Form 10-K.

Mainly, CenturyLink’s overall revenue continues to shrink at an alarming pace. That’s because sales from the broadband and enterprise portions of the company aren’t just failing to keep up with declines in the consumer business. They’re actually declining in the face of rising competition across the board.

Conrad's Utility Investor

Invest Smarter! Join Conrad’s Utility Investor!

What sets renowned income-investing expert Roger Conrad apart from the pretenders? His more than two decades of covering utility stocks and essential services—a wealth of knowledge and experience that you can’t find anywhere else.   

Smart investing. Taking advantage of real opportunities and not fads (and knowing the difference). Finding the companies and stocks that will deliver for the long haul, so investing lets you live instead of investing turning into your life. Roger Conrad has dedicated his career to these principles—and that’s what Conrad's Utility Investor delivers.

Subscribe today for instant access to a treasure trove of investment insight and knowledge, as well as Roger’s exclusive model Portfolios and ratings of more than 200 essential services.



Roger S. Conrad needs no introduction to individual and professional investors, many of whom have profited from his decades of experience uncovering the best dividend-paying stocks for accumulating sustainable wealth. Roger b