This company hails from a secularly declining industry, but its fundamentals are relatively strong.
Its 13.8%-yielding dividends are well covered.
It also has a prospect of capital appreciation, thanks to the undervaluation and to its fiber optic network capacity in the upcoming 5G revolution.
The rich dividends and capital appreciation appear to outweigh the operational and financial risks identified.
Consolidated Communications Holdings, Inc. (CNSL) is a rural local exchange carrier (RLEC) providing data, video, voice, and other telecom services in Texas, Pennsylvania, Illinois, Kansas, California, Minnesota, and the Northeast.