Looking for a 13% yield? Well, this stock comes pretty close. Check out Consolidated Communications Holdings (CNSL). (June 11, 2018)
CNSL
I want to look at Consolidated Communications ( NASDAQ: CNSL ) here for two reasons. Actually, there might be more than two reasons. This is a base here that goes back for a long time; you can see the stock had been drifting lower. If you bought it here you were in a lot of pain down here at $11.00 and you probably sold. The 50-day moving average had been trickling downward; the stock traded sideways for 5 months or so.
Meanwhile, the 50-day moving average has finally started moving up. That is all good. Pretty tight Bollinger Bands, 6 or 7 percent, tight enough when you look at this chart. These things are squeezing pretty tight; just last week, last Thursday; Boom! The stock pops out here on decent volume, nothing to write home about unless you are looking for an excuse to write home.
The stock broke out to a multi-month high and then it has had a couple days of follow through here. So this stock still has some room to go; I would give it another 10 percent of upside, in my estimation, just as far as looking at the chart and nothing but the chart. How high up could this thing go? From here I would look for at least 13.50, something like that.
Here is the other thing that you might be missing: almost a 13 percent dividend yield. That’s, in my view, one of the reasons why this stock is moving higher. If you like to buy stuff and hold stuff and get paid for holding it, this is a stock that you are going to be interested in buying. So for those reasons I am looking at Consolidated Communications ( NASDAQ: CNSL ), I think this is a buy right here. You can hold this stock, frankly, you can hold the stock to clear down below $11.00 and you’re still not even losing what you are making in this annual dividend here.
I wouldn’t recommend that as my style of trading but what I am saying is, there is ample reason for money to be coming into this stock; it has been beaten down, people want to make that dividend. So this is a big one. Even with rates going up a bit, that doesn’t even impact stuff like this. So I think this is a stock that you can buy now and then maybe even add to it; if the stock starts proving us correct the next move is higher.
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