Windstream Corporation (WIN): 5 Signs This Business Is Slowly Dying

CenturyLink, Inc. (NYSE:CTL) actually has the lowest payout ratio at 45.35%, followed by Frontier and AT&T at 60.33% and 61.78%, respectively. Windstream by comparison has a payout ratio of 107.09%. This isn’t the first time the company’s payout ratio has strayed above 100% either. If you want proof that Windstream isn’t generating enough cash, consider that their cash decreased $77.6 million year-over-year, while their long-term debt dropped by just $62,000. These numbers aren’t a surprise considering everything else Windstream is struggling with.

Anyone Else Seems To Be A Better Bet
If you want a high yield, at present Frontier Communications Corp (NASDAQ:FTR) offers an over 9% yield, and is outperforming Windstream Corporation (NASDAQ:WIN)in nearly every category. If you want a good yield of 5.7% with CenturyLink, Inc. (NYSE:CTL), or 4.87% from AT&T Inc. (NYSE:T), these two companies offer safety that the other two companies can’t match.

Windstream’s high yield is like a mirage in the desert. It looks real, you want to believe it’s real, but when you get close, it vanishes. Windstream’s shareholders who are hoping for improved results in the future might see something else vanish–their dividend.

Chad Henage owns shares of CenturyLink. The Motley Fool has no position in any of the stocks mentioned.

The article 5 Signs This Business Is Slowly Dying originally appeared on Fool.com.

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