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 $70.1 billion
Industry Integrated telecom services
Trailing-12-Month Revenue $85.4 billion
Management Chairman/CEO Cesar Izuel
COO Julio Lopez
Return on Equity (average, past 3 years) 31%
Cash/Debt $8.7 billion / $88.9 billion
Dividend Yield 10.2%
Competitors America Movil S.A.B. de C.V.
BT Group
Vodafone Group

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

On CAPS, 98% of the 969 members who have rated Telefonica believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those bulls, All-Star joryko, tapped the stock as a tempting turnaround pick:

This one has continued slipping for over a year now as it dropped from the mid $20's. ... However, it seems to have found a little support at this mark and has not dropped much below the $17-$20 realm in the last five years. ...

[Telefonica] is in a solid industry to weather the current conditions in Europe and has dropped to a point that I can't resist buying, simply for the value if nothing else.

Oh yea, [Telefonica] is one of those popular dividend plays too I guess. 

Of course, despite its strong five-star rating, Telefonica may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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