Buy, Sell, or Hold? (3)

To say that differently, a rural telephone company's ability to pay their dividend usually isn't affected by the economic cycle.


That's one reason I regularly use them in my clients' portfolios.


That hasn't prevented a sell-off of these rural telephone carriers of late.


Those buying these stable companies now are handsomely rewarded by higher dividend yield (many now in the 6-10% range).



The underlying businesses of these companies haven't changed.



Their ability to pay and increase their dividends hasn't changed.


So it's hard to justify selling them now.


It's quite easy to build the case for buying them.