Consolidated Communications: This Undervalued Stock Pays 13.8%-Yielding, Well-Covered Dividends

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About: Consolidated Communications Holdings, Inc. (CNSL)
by: Laurentian Research
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Laurentian Research
Deep Value, small-cap, growth at reasonable price, natural resources
Summary

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.

Investment Thesis

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.