Windstream plans to maintain its current dividend practice through the close of the transaction. Following the spinoff, the expected annual dividend per share in the aggregate for the two companies will be $0.70 per current Windstream share, with Windstream expected to pay an annual dividend of $0.10, while the REIT will have an annual dividend equivalent to $0.60.
So the question now is will the new spinoff result in enough added CAD long term to make uo for a significant dividend cut in the present? GLL
It will offer a predictable income stream in the form of a dividend that can be maintained without fear of a potential dividend cut going forward. It will be valued as a reit and collectively the two parts will be valued higher than todays price when comparing the rate of return to a treasury bond. The answer imo to your question is yes it will.