Thread regarding Verizon Communications Inc. layoffs

Dividend @ Risk?

JPMorgan analyst Sebastiano Petti:

"We anticipate that Schulman will pursue an assertive strategy to accelerate Verizon's fiber footprint growth, with a heightened focus on convergence to lower churn and enhance consumer segment volumes and share. However, increased capital expenditures to support footprint expansion are likely to pressure free cash flow and impede the company's de-leveraging trajectory. As a result, we would not be surprised if Verizon suspends dividend growth to prioritize investment in growth initiatives and/or discretionary share buybacks."

https://www.investors.com/news/technology/att-stock-verizon-stock-dividend-tmobile-stock-new-ceo/?src=A00220


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| 2171 views | | 3 replies (last October 22) | Reply
Post ID: @OP+1k83j04j8

3 replies (most recent on top)

ATT cut its dividend in half in 2022 and they survived. Verizon needs to do the same.

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Post ID: @ej+1k83j04j8

@aj Read between the lines. Just stopping the growth of the dividend yields very little. Schulman doesn't have until Sept 2026 go figure it out. The play will be to get all the bad news out ASAP.

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Post ID: @ax+1k83j04j8

Your heading is wrong. The analyst wonders if the growth is at risk, not the dividend. The increase usually happens at the September board meeting, plenty of time to figure it out.

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Post ID: @aj+1k83j04j8

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