Dividend.com: Qualcomm's Quandary

We removed Windstream from our "Recommended" dividend stocks list on Aug. 21, when shares were trading at $12.03. The stock currently has about a 12% dividend yield, based on last night's closing price of $7.88.

Windstream stock is down about 35% in past year, which is largely in line with the S&P average. The stock hit all-time lows in late October, so there is not much support underneath the current trading price. Windstream's dividend yield is intriguing, but the share price and revenue numbers need to stabilize before we will consider an upgrade.

The stock is fairly valued at around 10 times next year's estimates, but its dividend may not be sustainable with revenue and profits continuing to drop.

Windstream is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.

Disney Feels the Pain of the Consumer

Walt Disney(DIS Quote) reported late Thursday that its fourth-quarter income dropped 13% to $760 million, or 40 cents per share, from $877 million, or 44 cents per share, a year ago.

The company's revenue grew 5.8% to $9.45 billion from $8.93 billion, but the EPS came in 6 cents below consensus estimates.

The company's studio revenue was a disappointment falling 5% to $1.45 billion from $1.53 billion. The ABC television networks grew 4%, while parks and resorts revenue rose 7% to $2.97 billion. Lastly, consumer products revenue rose 41% to $812 million.

We had removed Disney from our "Recommended" list back on Sept. 29, when shares traded at $32.75. The company has a dividend yield of 1.53%, based on last night's closing stock price of $22.81. The company is trading at 11 times the low end of 2009 EPS estimates, but the outlook may not brighten for this brand until the end of 2009 at the earliest. The yield is a bit below a level we would like as well. The risk/reward is flat at this point.

Walt Disney is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.