If you are looking for an industry that has been depressed, in a ‘relatively stable’ industry, provides steady dividends, and pays a high yield, you might want to take a look at the telecommunications industry. Many of these companies provides services to small towns and rural areas. All of the following companies have market caps greater than $400 million, PE ratios less than 40, and PEG ratios less than 9 [for some reason, PEGs are much higher on telecom stocks than other industries], and pay dividends. The huge telecom companies, such as Verizon (VZ) and Sprint Nextel (S) have been excluded from this list.

Consolidated Communications Holdings Inc. (CNSL) provides telecommunications services to customers in Illinois, Texas, and Pennsylvania. The stock has a PE of 39 , a PEG of 3.57 , and pays a yield of 10.3% .

Citizens Communications Co. (CZN), based in Stamford, Connecticut, provides telecommunications services to small and medium-sized towns and to rural areas. The stock has a PE of 19 , a PEG of 4.54 , and pays a yield of 8.7% .

Iowa Telecommunications Services Inc. (IWA) provides telecommunications services to both residential and business customers throughout rural Iowa. The stock has a PE of 24 , a PEG of 6.54 , and pays a yield of 8.4% .

Windstream Corporation (WIN) provides local telephone, high speed Internet, long distance, network access, video and wireless to rural communities. The stock has a PE of 7 , a PEG of 4.1 , and pays a yield of 7.6% .

Alaska Communications Systems Group Inc. (ALSK) provides wireline and wireless integrated telecommunications services in the state of Alaska. The stock has a PE of 4 , a PEG of 8.55 , and pays a yield of 6.9% .

Qwest Communications International Inc. (Q) is a Denver, Colorado based provider of voice, data, Internet, and video services. The stock has a PE of 3 , a PEG of 4.8 , and pays a yield of 6.7% .

Embarq Corp. (EQ) is a Kansas based company that provides provides local and long distance voice telephone services, high-speed Internet, satellite video, and wireless services. They have 1.3 million Internet subscribers. The stock has a PE of 10 , a PEG of 4.64 , and pays a yield of 5.8% .

NTELOS Holdings Corp. (NTLS) provides wireless and wireline telecommunications products and services to customers in Virginia, West Virginia, and nearby states. The stock has a PE of 38 , a PEG of 1.58 , and pays a yield of 2.9% .

Centurytel Inc. (CTL) is a Monroe, Louisiana based provider of local and long distance voice, Internet access, and broadband services. The stock has a PE of 9 , a PEG of 1.97 , and pays a yield of 0.8% .

If you are looking for other high yield stocks with relatively steady dividends, you might want to check out high yield electric utility stocks, and top yielding gas utilities. There are also the oil royalty trusts that have high yields.

Disclosure: Author has owned WIN for a while in a retirement plan.

By Fred Fuld at Stockerblog.com

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