Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, French telecommunications giant France Telecom
With that in mind, let's take a closer look at France Telecom's business and see what CAPS investors are saying about the stock right now.
France Telecom facts
|Headquarters (founded)||Paris (1990)|
|Market Cap||$38.7 billion|
|Industry||Integrated telecom services|
|Trailing-12-Month Revenue||$59.6 billion|
|Management||Chairman/CEO Stephane Richard
CFO Gervais Pellissier
|Return on Equity (average, past 3 years)||11.9%|
|Cash/Debt||$11.9 billion / $55.2 billion|
Societe Francaise du Radiotelephone
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 725 members who have rated France Telecom believe the stock will outperform the S&P 500 going forward.
[W]hy did I just buy this stock? Because the valuation is cheap and I love the dividend. The payout ratio is 86% so considering how things are going I would not be surprised if it is cut this year. But still, even if the dividend is cut in half it will still yield ~5%. Also, despite the tough competitive situation I think there is some nice upside potential for when Europe eventually recovers.
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