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BT Group plc Message Board

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  • El_Capybara El_Capybara Oct 27, 2008 10:10 AM Flag

    How safe is the dividend now?

    Now it's paying over 19 percent, as of Monday morning. C'mon people--any opinions as to how safe the dividend is?

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    • I don't own BT but was looking to buy back when it was yielding 10% (round $30)...and that was less than a month ago.
      I bought Qwest instead...and it hasn't fared any better.
      My understanding is that BT is just an annuity. Not much growth, but very good cash flow and when I started watching it the consensus was that they could cover the divvy without trouble. That was S&P's opinion for what it's worth.
      Now, however, the market is saying that a 17-19% dividend is unlikely.
      Frankly, I have no idea. I have some closed end income funds that have gone from 7-9% payouts to 20%+. If I don't sell and I drip the dividends I can pick up some really cheap shares....but for me, right now, I don't see a bottom for BT and I'll probably just keep watching it.

      Good luck.

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