Monday, December 19, 2011

Windstream, is the dividend safe?

eps .95 with a dividend of $1? how long can this go on?|||Yield increases as the market and pps falls. We are in a very down market right now so the yield is looking too high. If the share price goes up by 25% the yield will fall and look sustainable. From what I have read the dividend is sustainable. Rural carriers are subsidized to a degree helping their cash flow and the internet subscribers are helping the bottom line. Look at CZN, another rural carrier with a high yield. Nothing is ever sure in the market but it looks good to me.|||The dividend is nearly 10% yield, I wouldn't guess long just by glancing at the corporation.|||I don't know if any dividend is truly safe. Having said that Windsteam is a very profitable company. Here are Morningstar's grades for it. I do own the company stock.


Morningstar Stock Grades





Growth C-


Profitability A


Financial Health NA

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