Dividend Yield: 9.5%
1-Year Total Return: 55%
Orange (ORAN), the French telecommunications giant, is growing earnings even as it struggles with top-line weakness. Not that the market seems to care much about the latter.
Cost cutting and shedding underperforming assets can get a company very far in days when revenue growth is so hard to come by. That goes double when the assets being shed put ample cash in Orange’s coffers — like the $1.4 billion it pocketed selling its Dominican Republic subsidiary.
It also helps that Orange has accelerated its rollout of 4G network services in France and Spain, leading it to capture market share (paid for, in part, with proceeds from asset sales). Between cost cuts and expanding 4G market share, earnings per share are forecast to grow 35% this year, and that should help fuel more outsized total returns.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.