Dependable and Growing

CenturyLink is the third largest telecommunications company in the U.S. The company offers an appealing 8.6% dividend yield. CenturyLink recently purchased a cloud computing company, Savvis, to offer cloud services similar to Amazon and Apple.

CTL is the telecommunication utility industry leader in technology, currently pursuing acquisitions which enhance CTL's business model. Company product offerings include: a) broadband services; b) voice and wireless services to personal household and businesses; c) cloud computing services; and d) entertainment services and product offerings to clients.

Appealing aspect

CTL's offers telecommunication utility investors an appealing aspect. CTL management is aggressive in pursuing acquisitions which provide accretive revenues. As a dividend investor, CTL offers the following benefits:

The CTL dividend for 2016 is projected at $3.08-per share. Assuming a CTL stock cost basis is $33.70, the $3.08-dividend would offer a 9.14% yield-on-cost. This is a very attractive yield-on-cost for a telecommunication utility holding. CTL has a .76-beta. This infers that the stock should move up or down at a 76% rate of the normal stock market. Higher beta stocks include biotechnology and high-growth rate stocks.

.... will allow CenturyLink to achieve global scale as a managed hosting and cloud services provider, and accelerates its ability to deliver those capabilities to its business clients.

Cloud computing is very much an innovative offering compared to the typical telecommunication utility company. Cloud computing should be a significant revenue and revenues driver.

Entire business unit focused upon cloud computing

Amazon has an entire business unit focused upon cloud computing. Amazon sells these services through numerous product offerings. The clients needs are based upon personal or business needs.

Apple announced iCloud.com plans on June 6th. The company will provide unparalleled services to clients to store their songs and content. Apple's thrust will begin this fall with specific offerings to its iTunes and computer users. Cost will be based upon the amount of usage.

...to realize certain strategic to realize certain strategic benefits, including enhanced financial and operational scale, market diversification and leveraged combined networks...

CenturyLink has a strong balance sheet compared to the telecommunication utility peer group. Alaska Communication, Frontier Communications, and Windstream all have debt exceeding their market capitalizations. This data is reflected in their enterprise value. CTL has stated its plans to reduce its debt level and focus upon growth both with the Qwest acquisition and the Savvis cloud computing offerings.