Embarq (EQ), a Sprint Nextel spinoff, has a yield of nearly 8% and a comfortable dividend-coverage ratio of 56%. The risk with Embarq -- and Verizon and AT&T -- is exposure to the declining wireline phone business.

9.2%

PE of 8, a PEG of 3.88, and it pays a yield of 6.8%.

5.8%

Embarq (EQ) was upgraded from Hold to Buy, Deutsche Bank said. $64 price target. Company has a stable outlook, and presents investors with attractive free cash flow and dividend yields.

Goldman Sachs said it is upgrading Embarq (EQ) to Neutral from Sell based on recent steep selloff. See upside to $43 price target, which remains unchanged.

During the uncertain times that we are facing, how do we decide which stocks to invest in? The uncertainties have resulted in some stocks being inexpensive, and you can buy into them at a fairly good price. Buybacks and insider purchases are good indicators. Embarq recently announced a share buyback.

Embarq's board approved a buyback of up to $500 million, representing 7% of the company's outstanding shares. The buyback is to run through June 30, 2009. Apart from the board, CEO Daniel Hesse also seems to be vouching for Embarq's shares -- he bought 5,000 shares of the company in November at an average price of $50.

Embarq, which was created by Sprint-Nextel's spinoff of its local phone operations, said its third-quarter net operating revenues declined marginally to $1.47 billion, while net income fell to $157 million. Revenues of both the telecommunications and logistics units declined. However, the company raised its quarterly dividend 10% to 68.75 cents (yielding 6%), marking the second quarterly hike in less than a year.

The wireline sector has been under pressure from growth in wireless and VoIP systems. Michael Rollins of Citigroup said in a December report that telecom companies were losing residential phone subscribers to VoIP and wireless offerings at a steady rate of 7% to 8% a year. He added that VoIP penetration could rise to 25% in 2010, from 10% in 2006, while the number of wireless-only households is likely to rise to 27% from 13%. In mid-December, JPMorgan upgraded its rating on Embarq to overweight from neutral.

Embarq Corp. recently announced that its board has approved a 10% increase to its quarterly dividend and a $500 million share repurchase authorization. The Overland Park, Kan.-based communications-services company will pay a dividend of 68.75 cents on March 31 to shareholders of record as of March 10. Separately, the buyback program will expire on June 30, 2009.

The stock trades for 5x cash flow.

10%

core ops are in big destination cities of Las Vegas and Orlando ~ lots of convention and tourism and demand for networking

More liabilities than assets. The downgrades are justifiied. Move along to more profitable, better managed financials.