Frontier Communications Corporation (NASDAQ:FTR) has been a stock that I have been following for a while. Now, for a long time, I had worries over the company’s dividend, and sure enough, it had been cut over time. Back in the fall I told you plainly that the loss of customers was unsustainable. However, it has managed to keep the payouts going. Some claim it’s unsustainable, but my prior work has shown nothing to indicate a truly imminent cut. Frontier has delivered. The stock, however, has been a mess and has imploded once again after reporting earnings, which I would like to discuss.

The fact is that performance has been slowly declining for the company so there is truly cause for concern, not just short-term, which the stock clearly suggests, but also long-term. It is tough to understand where the company is going and so caution must be exercised. The name is very risky here. We cannot compare this quarter to those past directly as we are now past the Verizon (NYSE:VZ) asset acquisition. Now, I will be clear. The dividend is safe, for now. The company just declared a $0.105 per share payout, in line with previous. I see the dividend as secure so long as revenues aren’t expected to drop off significantly. They have been pressured of course, driven by customer churn and the stock has responded by dropping in tandem with customers.

The customer count is impacting things. However, given……….READ MORE

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