Buy This 9% Dividend Yielding Telco For Cheap Valuations And Growth

Alaska Communications Systems Group Inc (ALSK)'s shares have gone through a significant devaluation on a YTD basis; however, we are bullish on the company based on its stable gross margins and inclining operating margins, signaling the strength in its operations. Moreover, in our opinion, the company's recent move to sell the iPhone as well as an agreement to join the Alaska wireless network will help it in bringing growth to its subscriber base and improve its cash position. The stock remains attractive from a dividend perspective, currently yielding 9%, which is well supported by its high operating cash flow yield of almost 85%. ALSK provides communication services to its residential and corporate customers in Alaska. The company has a market capitalization of approximately $98 billion. The stock trades near its 52-week low of $1.73, with a dividend yield of 9%. The company derives its revenues from business, wholesale, consumer and... Read more