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Strategies & Market Trends : Dividend investing for retirement

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From: geoffrey Wren5/23/2014 12:12:33 PM
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NTLS will cut dividend to .00. This comes within announcement of a new deal with SPRINT that will reduce EBITA and increase capital costs, and therefore make NTLS need to conserve capital. NTLS went up, because deal was considered better than alternatives that were feared. My guess though is that NTLS will slide from here, because GAAP earnings numbers are lousy, and without dividend it will have less attraction.

Many Telcos sport high yields, and theoretical ability to support the dividend based on cash flow (not earnings), since there is so much depreciation of network build costs. But it would not be surprising to see any of the following reduce their dividends:

FTR
WIN
CNSL

Still, I own all 3 of these, based primarily on cash flow perspective. I sold most NTLS yesterday.
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