Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Spanish telecom giant Telefonica (NYSE: TEF) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Telefonica's business and see what CAPS investors are saying about the stock right now.

Telefonica facts

Headquarters (founded) Madrid (1924)
Market Cap $56.6 billion
Industry Integrated telecom services
Trailing-12-Month Revenue $80.9 billion
Management Chairman/CEO Cesareo Izuel
COO Julio Lopez
Return on Equity (average, past 3 years) 29.9%
Cash/Debt $10.1 billion / $85.2 billion
Dividend Yield 10.1%
Competitors America Movil
BT Group
Vodafone Group

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,084 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, sbtruitt, tapped the stock as an attractive bargain opportunity:

[Telefonica] is currently being punished for the Euro crisis and in particular Spain's current recession. Even with a further reduction (but hopefully not) of their dividend, it will only add to the [share price] increase going forward. [Latin American] exposure ... will add to their rise. Great low to buy into now, with the bonus of a great [dividend].  

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Telefonica may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.