Though the market is currently in turmoil, the stock of global telecom CenturyLink (NYSE: CTL) has been in the doldrums for a while. After its 2017 merger with Level 3 Communications, CenturyLink has run into trouble with declining revenue and a falling stock price, missing out on the rally of 2019.
On the other hand, management has done a good job of realizing operating synergies and keeping free cash flow constant. CenturyLink's dividend cut in early 2019 also caused the stock to decline initially, but the extra cash allowed CenturyLink to pay down debt in 2019 while also investing in new growth drivers, such as high-speed connectivity and edge computing.
With a current dividend yield over 8.3%, and one that's well covered three times over by free cash flow, is now the time for investors to look at this bargain-priced stock?
Source Fool.com