5 Companies Underperforming This Month Now Offering Better Dividend Yields

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 |  Includes: CTL, FTR, PBI, RAI, WIN
by: Follow My Alpha

With markets in full retreat over the last week we thought now was a great time to look at companies offering better dividend yield. Obviously, with markets being this volatile in some form or another it makes sense to “demand” more compensation as an investor if exposure is being taken on. We ran a screen for companies that have had negative performance this month. From this pool we screened for companies that were providing at least a 4% dividend. We did not screen out any sectors or market caps for this list.

The list below is sorted from highest to lowest by dividend yield.

1. Fronter Communications (NYSE:FTR)

Sector Technology
Industry Telecom Services-Domestic
Market Cap $6.7B
Beta .78
Analyst Sentiment 5/15 - List Buy/Outperform (Bearish)
Click to enlarge

The dividend yield has now increased to 10.18%. In the last month the firm has lost 11.7% in value. The firm provides services to rural areas to small-to-medium towns/cities as a local exchange carrier. It offers ILEC services under the business name "Frontier."

Short Interest Note:
The short interest for the firm is 8.5% as of 07/15/2011.

2. Windstream Corp (NASDAQ:WIN)

Sector Technology
Industry Telecom Services-Domestic
Market Cap 5.94B
Beta .91
Analyst Sentiment 6/6 - List/Outperform (Bullish)
Click to enlarge

The firm provides telecommunications services in rural communities within the US. The firm's subsidiaries network access, video, local, and long distance service along with high speed data services. In the last month the firm has lost 8.38% in value in value. The dividend yield has now increased to 9.1%.

Short Interest Note:
The short interest for the firm is 3.9% as of 07/15/2011.

3. CenturyLink Inc (NYSE:CTL)

Sector Technology
Industry Telecom Services-Domestic
Market Cap 20.32B
Beta .76
Analyst Sentiment 11/18 - List Buy/Outperform (Bullish)
Click to enlarge

The firm offers integrated communications that range from local-to-long phone services, broadband, and internet access. In the last month the firm has lost 15.3% in value. The dividend yield has now increased to 7.85%.

Short Interest Note:

The short interest for the firm is 3.4% as of 07/15/2011.

4.Pitney Bowes Inc (NYSE:PBI)

Sector Consumer Goods
Industry Business Equipment
Market Cap 4.05B
Beta 1.13
Analyst Sentiment 1/4 - Buy/Outperform (Bearish)
Click to enlarge

The firm provides mail solutions and mail processing equipment worldwide. Services offare end-to-end.In the last month the firm has lost 11.1% in value. The dividend yield has now increased to 7.17%.


Short Interest Note:

The short interest for the firm is 10.1% as of 07/15/2011. Given the short interest is above 10% this could either become a short squeeze opportunity or a short seller favorite.

5. Reynolds American Inc (NYSE:RAI)

Sector Consumer Goods
Industry Cigarettes
Market Cap 19.88B
Beta .7
Analyst Sentiment 4/11 - Buy/Outperform (Bearish)
Click to enlarge

This is the parent compant of R.J. Reynolds Tobacco. In the last month the firm has lost 8.4% in value. The dividend yield has now increased to 6.11%.

Short Interest Note:
The short interest for the firm is 2.1% as of 07/15/2011.

We hope this helps investors as they do their own homework and due diligence on companies that are now offering better dividend yields relative to their recent stock performance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.