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, P/E 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 P/E of 39, a PEG of 3.57, and pays a yield of 10.3%.
• Citizens Communications Co. (CZN) is based in Stamford, Connecticut and provides telecommunications services to small and medium-sized towns and to rural areas. The stock has a P/E 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 P/E 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. It has 1.3 million Internet subscribers. The stock has a P/E 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 P/E 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 P/E of 9, a PEG of 1.97, and pays a yield of 0.8%.

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

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