A Close look At CenturyLink

2011 was a transformative year for CenturyLink (NYSE: CTL ) , the third-largest telecommunications company in the United States behind AT&T and Verizon Communications. The company closed on its acquisition of Qwest Communications in April and in July, it acquired Savvis, a global player in cloud infrastructure and hosted IT solutions.

CenturyLink pays a healthy quarterly dividend of 72.5 cents, which amounted to a free cash flow payout ratio of about 50% in 2011. The dividend's quite safe for the time being, but there are many things to watch, including revenue growth, ongoing operating expense reduction, and continued growth in broadband subscribers, cloud services, and the company's Prism TV offering. If the company can meet its long-term growth goals, it may further grow its juicy dividend in the future.

Source: Motley Fool

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