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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (12003)	6/29/2012 2:30:55 PM
From: Spekulatius	1 Recommendation Read Replies (2) \| Respond to of 34328

re PT market cap $4Bcash + ST inv. $5.32Bdebt LT $14.6Binterest expense about $300M/yearPE 9.4P/S 0.4 (lowest in the last 10 years)book value per share: $5.16assets total 28B$sales ttm $9.5Bshares out have steadily declined from 1,250M in 2004 to 897M now The high debt (14.6B$) and the PE of 9.4 do not appear to make a 16% dividend yield likely going forward. i think I like TEF better (don't own it) - they have their dividend cut already behind them. FWIW today is a day to think about selling, not buying something, imo.

To: Jacob Snyder who wrote (12003)	6/29/2012 4:39:41 PM
From: sm1th	Read Replies (1) \| Respond to of 34328

Any opinions on PT, Portugal Telecom? Div yield 16% today, but no guarantees for tomorrow. What happens to it when Portugal leaves the euro?

To: Jacob Snyder who wrote (12003)	7/13/2012 3:32:56 PM
From: Jacob Snyder	1 Recommendation Read Replies (1) \| Respond to of 34328

PT, Portugal Telecom: Portugal Telecom will pay an annual dividend of 32.5 euro cents a share for the fiscal years 2012 to 2014, it said today. The company paid 65 euro cents on last year’s earnings. It also announced a 200-million-euro ($249 million) share buyback program for the three-year period, businessweek.com “Moody’s notes that the dividend cut and refinancing extension, together with the completed extension of Portugal Telecom’s existing €800 million syndicated bank loan with all international banks, effectively pre-fund the company’s refinancing needs through June 2016. As a result, the company will not need to access the debt markets for refinancing in the medium term digitaltveurope.net Portugal Telecom produced $2.3 billion in cash from operations in 2011 and spent $1.6 billion on upgrades and expansion of its network, leaving more than $724 million of free cash flow for debt repayment and dividends. The company has a high debt load of $11.9 billion, or 76% of its market capitalization, but no need for additional financing through 2015. As a result, Portugal Telecom has no risk exposure to a short-term freeze in Europe's credit markets. The company is expanding aggressively in Brazil, which Portugal Telecom plans to fund by halving its dividend for fiscal years 2012-2014. However, even at the reduced $0.41 per share annual rate, the dividend yield on Portugal Telecom is almost 10%. The company's 12% operating margin is higher than industry peers, yet Portugal Telecom trades at a price-to-earnings (P/E) ratio of 12 and below the telecom industry P/E of 13. At a current price of $4.50, investors can purchase these shares for less than balance sheet cash ($6.07 per share) and at roughly book value ($4.12 per share). istockanalyst.com disclosure: entered orders to start buying PT, in increments, beginning at $4 and every 10% decline from there. This is a bet consumers in Brazil, Africa, China (and even Portugal) will still pay for cell-phone and internet access, and PT can get financing, no matter what mess the governments and banks of southern Europe are in.