@Banker
CTL ist ein schönes Beispiel dafür, dass FCF wichtig ist, aber eben nicht alles (unser gestriges Thema Free Cash Flow bzgl. utilities! in Deinem thread!).
".. When combined with the $850 million in cost savings from synergies (which the company is on track to achieve), CenturyLink's free cash flow should come in at about $1.8 billion above its dividend cost, good for a full year free cash flow payout ratio of 56%.
So if the company's dividend is well covered by free cash flow, and management plans to permanently lower spending on declining landline businesses, then why did the stock fall off a cliff? ...
Why are CenturyLink's most promising business units struggling? Simply put, overcapacity and large rivals (like AT&T and Verizon) are limiting the growth potential of the company's most important business lines.
CenturyLink has essentially no pricing power in these businesses, which is why some analysts expect that the fiber and enterprise services businesses will see only modest sales growth over the long term.
Unfortunately, progress in those markets seems likely to be swamped by CenturyLink's deteriorating consumer business (cable TV and landlines), which fell over 5% in the third quarter and continues to account for more than 20% of company-wide revenue.
Even CenturyLink's consumer broadband internet division, which should be theoretically impervious to cord cutting (you can't stream without fast internet service), is gradually losing subscribers. ... "
(Quelle SimplySafeDividends hinter paywall ......... SSD score 10/100)
Also eine weitere Kürzung der Dividende wäre jetzt nicht die gaaaanz große Überraschung?!
CTL ist ein schönes Beispiel dafür, dass FCF wichtig ist, aber eben nicht alles (unser gestriges Thema Free Cash Flow bzgl. utilities! in Deinem thread!).
".. When combined with the $850 million in cost savings from synergies (which the company is on track to achieve), CenturyLink's free cash flow should come in at about $1.8 billion above its dividend cost, good for a full year free cash flow payout ratio of 56%.
So if the company's dividend is well covered by free cash flow, and management plans to permanently lower spending on declining landline businesses, then why did the stock fall off a cliff? ...
Why are CenturyLink's most promising business units struggling? Simply put, overcapacity and large rivals (like AT&T and Verizon) are limiting the growth potential of the company's most important business lines.
CenturyLink has essentially no pricing power in these businesses, which is why some analysts expect that the fiber and enterprise services businesses will see only modest sales growth over the long term.
Unfortunately, progress in those markets seems likely to be swamped by CenturyLink's deteriorating consumer business (cable TV and landlines), which fell over 5% in the third quarter and continues to account for more than 20% of company-wide revenue.
Even CenturyLink's consumer broadband internet division, which should be theoretically impervious to cord cutting (you can't stream without fast internet service), is gradually losing subscribers. ... "
(Quelle SimplySafeDividends hinter paywall ......... SSD score 10/100)
Also eine weitere Kürzung der Dividende wäre jetzt nicht die gaaaanz große Überraschung?!
