Tuesday February 05, 2013
by Tom Slee, editor The Income InvestorInvestors who are able to accept some risk should take a hard look at good quality, dividend paying blue chip stocks, such as our Top Pick for the month is
CenturyLink (
CTL).
CenturyLink is the third largest exchange carrier and Internet service provider in the US. Founded in 1930 as a switchboard in a family parlour, Louisiana-based CTL has grown into a telecom giant. Annual revenues are well in excess of $18 billion and assets now total $54 billion.
Why we like it: This is a company on the move that has grown rapidly through acquisitions, especially during the last four years.
The purchase of Savvis in 2011 was particularly significant and gave Century a foothold in the red hot "cloud" computer services market, regarded by many experts as the wave of the future.
The handsome $2.90 dividend is well protected and with the stock trading at $40.02 provides a 7.25% yield. Quarterly dividends of $0.725 a share are currently being paid during the first week of March, June, September, and December.
There is risk as the companydiversifies away from traditional telephone services into the wireless and video markets. This stock is suitable for income investors who are prepared to accept a moderate amount of risk in a retirement portfolio.
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