Shares in rural telecommunications provider Frontier Communications are up more than 10% since reporting a solid quarter last week. The company beat expectations for revenue and earnings while also posting solid margin expansion. However, investors looking at Frontier shares solely for their attractive dividend yield could be making a crucial mistake. One quarter can't make a company, but it certainly can break one. Frontier still poses a number of risks to investors as it continues to manage through acquisition integration challenges, a highly leveraged balance sheet, and declining revenue and customer numbers. In the following video Brenton and Austin discuss Frontier, and reasons to be cautious when considering a potential investment.
When it comes to dividend yields, you won't find many higher than Frontier Communications'. While its juicy dividend is tempting, every Frontier investor has to understand that it's not a sure thing. A huge acquisiton has transformed the company forever. Will the move bear fruit, or are investors destined for another disappointing dividend cut? In this premium research report on Frontier Communications, we walk you through all of the key opportunities and threats facing the company. Better yet, you'll receive a full year of updates to boot. Click here to learn more.
Brenton Flynn has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.