they sell a piece of a growing wireless business to subsidize the landline business thats dying .. this coupled with the high coupon bond sale tells me they are in trouble and need cash...so long 40 cent div
FTR management has had a HUGE job of integrating the VZ purchase into FTR business. They said it would take 2-3 years. We are seeing improvement though I think it has been harder than they thought it would be.
The reduction of Divi from .75 to .40/yr was needed but at the current time with the FCF being healthy the Divi should be safe for 2013 and 2014........ maybe even 2015. The restructuring debt may not save them money but it does give them additional YEARS to improve the business or diversify into other income producing activities.
I like FTR and will hold for at least until the end of 2014.