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CenturyLink: Should You Buy The Juicy Dividend Yield?

Published Mon, 24 Sep 2012 09:40:55 -0400 on Seeking Alpha

Shares of CenturyLink (CTL) have stably grown by 27.36% over the past 12 months. At $41.89 per share, the stock is trading very close to its 52-week high of $43.43 just attained recently. CTL has been a popular dividend stocks given its lofty dividend yield at 6.9%, but should dividend investors buy on this upward price trend? I am of the view that CL has become somewhat pricey after the solid rise and the company appears to have a tight financial capacity to support the current high dividend yield. My opinion is based on the following five reasons: 1. CL appears to be pricey relative to the company's growth potential (see table below). Analysts on average predict CL's earnings to rise by a 2-year CAGR of 19.4% over the current and next fiscal years, largely lower than the average of 27.1% for a peer group consisting of CL's competitors such... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AT&T 38.38   16.1 2.38 2.04 5.43
VERIZON COMM 60.43   15.8 3.83 2.46 4.04
DISH NETWORK 35.89   13.2 2.71 0.00 0.00

AT&T - T
AT&T - T  


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