Dividend cut coming
18 replies (most recent on top)
In a rising interest rate environment, companies that have high debt load are hosed. Verizon has hundreds of billions of debt. Remember that 50 billion CBand auction that contributed nothing to revenues. This is why dividend will be cut. There will be thousands of layoffs for at least a decade. This is why the CFO is leaving the sinking ship.
Here is some incite
https://seekingalpha.com/article/4584801-will-verizon-cut-the-dividend-like-intel-and-vf-corp
"We do believe a reduction to the dividend is coming."
Then expect the entire finance leadership team to be gone within one year and with questionable future prospects. So if this were to happen, expect that crew to be compensated with golden handcuffs, and to coincide with a change in locations.
Hans and his homies really made a mess of things and Tony does not have the financial chops the cut the dividend and survive. He may look the part but does not have the smarts or chops to pull it off and survive.
This was brought up today in an upper level management meeting. They are concerned with taking on new DEBT and the dividend costs slowing the ability to improving the network.
We do believe a reduction to the dividend is coming.
The dividend is what drove Verizon to buy out Vodafone and increasing the dividend regularly was something introduced by a much earlier CFO trying to get on track to become a Dividend Aristocrat. The company should have stopped increasing when the invested heavily in 5G. For them to cut the dividend before cutting you would be a death knell as it was for GE for many years. Expect a dividend freeze and new executive management me thinks. Blackrock definitely blew this one assembling this board.
If this happens, expect stock price to drop below $20. No one sees VZ as a growth stock. It's value is its dividend. Without that, what value does VZ have as a stock?
VZ dividend poster with their whole retirement in vz stock might finally break.
Go look at the Verizon cash flow statement. Look at the debt they have and think about bonds rolling over at new interest rates much higher than they were when initially issued. Do some basic math. The easy conclusion is that THEY CANNOT SUSTAIN THAT PAYMENT. If you can’t see what’s coming I can’t help you, but don’t say you weren’t warned.
well if you need to save the dividend ,you need to give pay cuts to the upper management in this company and the staff that they have following them around all day making big salaries.
Field director telling techs no ot no weekend. We must save the dividend
hope not,going to have to stay working alittle longer or until i get riffed
They will do RIFs before they cut the dividend
Mark my words. It’s going to happen. The math is against them.
I think it will happen, and likely to coincide with Hans's exit.
With costs increasing, this has been discussed recently and should be expected.
No one here knows but I myself would not be surprised.
Garbage post and another reason this site is only for entertainment purposes.
Not a chance.
All depends on net income, which has been flat/slightly increasing.
Dec 2021: $4.61B
Mar 2022: $4.58B
Jun 2022: $5.20B
Sep 2022: $4.90B
Dec 2022: $6.58B