Anyone who thinks it's a good business model to continue to pay out millions in dividends quarter after quarter (and borrowing money to do so) from a company with a 4-1 debt ration needs to turn in their business degree. The board continues to approve because they are top dividend receivers.
Looks like I'm not the only one that thinks that: Elliott believes Crown Castle (CCI) needs new executive and board leadership, according to a letter the activist wrote to the board on Monday. The activist wants CCI to review its fiber business and evaluate if CCI is the best owner of the fiber unit.
"Crown Castle suffers from a profound lack of oversight by the Board, which has contributed to its irresponsible stewardship and flawed financial policy," Elliott managing partners Jesse Cohn and Jason Genrich wrote in a letter to Crown Castle's board on Monday. "The Company's strategy, led by CEO Jay Brown since 2016, has been a failure, as demonstrated by the breathtaking magnitude of its underperformance."