CenturyLink (CTL) is having a horrible year. Its stock price has fallen nearly 20% in 2013. But, happily for new investors, that has pushed the yield on the dividend — at 6.9% — up to silly levels.
The telecom company — until recently a member of the S&P Dividend Aristocrats — wrote off a whopping $1.1 billion for goodwill in the latest quarter because its data housing business is something of a dud.
But lest you think CenturyLink has no hope of growth, it is quietly making good with its Internet-based TV broadcast service. Known as Prism, the service has reached almost 150,000 paying households in less than three years. It also allows CenturyLink to upsell customers to a triple-play package of broadband, landline and cable services.
For now, however, profit growth will be slim. Wall Street expects the company to grow full-year earnings per share by just a penny this year — and by another penny in 2014.