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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Zerovest who wrote (51766)	6/27/2013 10:31:00 AM
From: geoffrey Wren	Respond to of 78748

"ugly and misunderstood" In dividend paying that might be describing any company with a high dividend yield, indicating that the market expects the dividend to be cut. The market is not always right. The trick is to know which are the best candidates for maintaining the dividend as they may be ugly and misunderstood. WIN and FTR are two local telecoms with high dividends that I own. They have a lot of depreciation that reduces recorded earnings. They should be assessed on a cash flow analysis rather than GAAP earnings, and you have to make assumptions about debt rotation, the future rate of line loss, and so on. Both have unpleasant charts so they are ugly. Whether misunderstood or not is the investor's decision.