NEW YORK (TheStreet) -- Shares of Frontier Communications (FTR) were gaining 0.3% to $6.56 after-hours Thursday after the telecoms services company announced it will increase its quarterly dividend by 5%.
Frontier Communications will increase its quarterly dividend to 10.5 cents a share from 10 cents a share when the company announces its dividend for the first quarter of 2015. The new quarterly dividend increases the company's annual dividend to 42 cents from 40 cents a share.
The company plans to declare its first quarter 2015 dividend in February 2015 for payment in late March 2015.
Must Read: Warren Buffett's 25 Favorite Stocks
"Today's announcement reflects the board's confidence in Frontier's business and financial strength and our solid execution performance in integrating the Connecticut acquisition," Frontier Communications Chairman and CEO Maggie Wildrotter said in a statement.
TheStreet Ratings team rates FRONTIER COMMUNICATIONS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTIER COMMUNICATIONS CORP (FTR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."