CenturyLink: The 9% Dividend Steal
CenturyLink ended 2016 down at the lows, as the market was unimpressed with the company's decision to purchase Level 3.
The 9% dividend appears easily supported after the deal closes, based on free cash flow analysis.
A recent analyst price target provides ample upside that is a bonus with the large dividend.
CenturyLink (NYSE:CTL) ended 2016 in the dumps. The market didn't fondly view the company's proposed merger with Level 3 Communications(NASDAQ:LVLT), sending the stock down to the lows from the start of the year.
Even after the 6.6% gain on the first trading day of 2017, CenturyLink still offers a nearly 9% dividend yield. Should investors rush into the stock at around $25 per share?
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Disclosure: Long CTL. Please review the disclaimer page for more details.