Zacks Analyst Interview Highlights: Embarq, Verizon and Bell Canada

Business Wire, July 19, 2006

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst David Weissman, who discusses Embarq (NYSE: EQ), Verizon (NYSE: VZ) and Bell Canada (NYSE: BCE).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

What can you recommend for investors still interested in maintaining an investment allocation in the telecom industry?

During these turbulent market times that may be exacerbated by higher interest rates and continued expectations of inflation, the impact is often more severe in higher-risk telecom and technology equity sectors. If investors are considering an allocation in telecom, it is worth identifying established companies with significant balance sheet strength, strong cash positions, limited debt, and with the ability to effectively improve their business prospects. I look for companies that are offering attractive dividend yields and companies that are large and stable to weather the volatility.

Can you give us some examples of respectable dividend-paying telecom companies?

Sure. It is rare to find a telecom equipment company paying a dividend. However, most telecom services companies offer some sort of payout to their investors. In that regard, I have identified Embarq (NYSE: EQ) as offering one of the more attractive dividends in the United States services sector, yielding approximately 5%. Verizon (NYSE: VZ) is not far behind in terms of a dividend payout, and I believe Verizon would be a more suitable investment as their business is more stable and the company has been around much longer than newly formed EQ, which was the recent spin-off of Sprint's local telephone business.

Probably a worthwhile strategy is to couple divdend paying companies with diversification in foreign countries. Bell Canada (NYSE: BCE) is also offering an attractive dividend at approximately 4.6% when we last checked.

Read the full interview at http://at.zacks.com/?id=2647.

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