Unlike most dividend paying stocks, Frontier Communications (NASDAQ:FTR) isn't trading anywhere near multi-year highs. The company is busy integrating Verizon Communications' (NYSE:VZ) local assets, but the fundamental story hasn't changed much over the last couple of years.
My investment thesis back at the end of 2014 highlighted how the decision to raise the dividend wouldn't help the stock in the long run. After a brief irrational surge, Frontier has spent a significant time below $5. Now the stock yields over 9%, but questions remain regarding the financial picture.
FTR data by YCharts
The Verizon transaction doubled the quarterly revenue base to $2.6 billion. The deal though didn't alter the reporting of net losses by Frontier.
