NEW YORK, NY--(Marketwire -02/08/12)- With the S&P 500 skyrocketing in the early stages of 2012, investors are shifting away from dividend-paying stocks. According to a recent article from The Wall Street Journal (WSJ), dividend payers often are not perceived to have the same potential for earnings and revenue growth as smaller firms. "When the rest of the market is booming, dividend payers are often lagging behind the crowd," the WSJ argues. Five Star Equities examines the outlook for companies in the Domestic Telecom industry and provides research reports on Frontier Communications, Inc. (NASDAQ: FTR - News) and AT&T, Inc. (NYSE:T - News). Access to the full company reports can be found at:
In 2012, non-dividend-paying stocks on the Standard and Poor's 500 are up more than eight percent, while dividend payers are down approximately 1.3 percent and the index as a whole is up close to five percent, data from Bespoke Investment Group finds.
While it is possible that dividend stocks could trail this year, Jack Ablin, chief investment officer of Harris Private Bank, told Reuters that "long term, dividends have accounted for nearly half of the S&P 500 investors' total return." Last year, dividends accounted for all 2 percent of the S&P 500 index's total return, according to an article from Reuters.
Five Star Equities releases regular market updates on the Domestic Telecom industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.fivestarequities.com and get exclusive access to our numerous stock reports and industry newsletters.
Presently Frontier communications pays an annual dividend of 75 cents for a yield of around 16.6 percent. The company formally opened a new center in Allen, Texas on January 25, 2012. The Allen Center is home to a new National Operations Center (NOC), one of several that manage the traffic and security of Frontier's national communications network.
Shares of AT&T have been relatively flat in 2012. The company currently pays an annual dividend of $1.76 per share for a yield of around 5.9 percent. AT&T Inc. gained a net 717,000 subscribers on contract plans in the fourth quarter.
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