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Strategies & Market Trends : Dividend investing for retirement
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Graustus
To: robert b furman who wrote (33099)10/22/2020 1:25:20 PM
From: E_K_S1 Recommendation  Read Replies (1) of 34328
 
I own CTL (now LUMN) dealing w/ the similar issue, huge debt but also has a nice growing FCF. LUMN has been calling in some old Qwest Bonds but did cut their dividend. Now FCF is even higher and debt coming down.

Not sure what T is doing but we now know FCF growing so (1) do they buy back shares vs (2) call in debt especially div yield 7.3%. Stock need to run higher maybe reflect a 5%-6% yield or they s/d reduce the dividend and pay down and/or restructure debt.

The positive is FCF growing and wireless (and hopefully broadband) subscription growing. Management needs to paint a better road-map for the long term solution to debt issue. Maybe they have but I have not seen any analyst detail in their reviews/analysis.

I am/was very please w/ T's report, everything you described. I also see $40/share as a fair target based on current interest rates but like LUMN it's going to be several quarters to prove this to Mr. Market.

Not selling any covered Calls but have been buying w/ almost a 3% portfolio position and No. 7 in my top 10 holdings.

This will be a safe good dividend payer hold (vs Credit Union paying 0.7%). Could see a 40% gain in price in 24 months too. What's not to like about that?

At the current price of $28.20/share the dividend yield is 7.4% based on the annual payment of $2.08/share.

EKS
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