Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Portugal Telecom (NYSE: PT) has earned a respected four-star ranking.

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

Portugal Telecom facts

Headquarters (Founded) Lisbon, Portugal (1994)
Market Cap $6.2 billion
Industry Integrated telecom services
Trailing-12-Month Revenue $6.24 billion
Management

CEO Zeinal Bava (since 2008)

CFO Luis de Melo (since 2006)
Return on Equity (Average, Past 3 Years) 29.2%
Cash/Debt $4.8 billion / $16.9 billion
Dividend Yield 12.3%
Competitors

America Movil (NYSE: AMX)

Vodafone Group (Nasdaq: VOD)

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

On CAPS, 95% of the 202 members who have rated Portugal Telecom believe the stock will outperform the S&P 500 going forward. These bulls include troikopasso and All-Star TSIF, who is ranked in the top 0.1% of our community.

Just last month, troikopasso tapped Portugal Telecom as an international income opportunity: "The company has a great dividend yield and the management is doing efforts to maintain the dividend. Although PT is a Portuguese company they have exposure to Africa and Brazil."

In fact, Portugal Telecom sports a whopping dividend yield of 12.9%. That's much higher than that of other foreign telecom plays like America Movil (1.3%), Vodafone (5.1%), and Telefonica (NYSE: TEF) (10.2%).

CAPS All-Star TSIF expands on the outperform argument:

Portugal Telecom despite being in the dreaded Eurozone area of Portugal also operates in Brazil. Margins are decent for a telecom and the sell-off has them at 1.4 Book. $17 Billion in debt is typical of a telecom, but Portugal Telecom has managed to hold $4 Billion in cash as a serious cushion after selling off one division a year or so ago. ...

Overall a tricky one to value in a tricky economy in a tricky spot in the distressed Euro area. I like their growth potentials, especially in Brazil and at $7 they appear to be priced with a decent enough margin to warrant the risk/reward.

While they have had an erratic share price for years, I'd be looking to try to hold this one, especially if they stabilize before dividend time in May.

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