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Frontier Communications Corporation Message Board

  • sage2123 sage2123 Jun 4, 2014 9:09 AM Flag

    Almost Ten Dollars A Share In Dividends

    Just did a little research, and since FTR reinstituted its dividend back in 2004 I have received $9.875 per share in dividends.

    These monies have been reinvested in new shares through DRIP.

    This has also greatly lowered my cost basis as FTR shares have traded lower for many years.

    I do realize that share price has been under pressure due to risk concerns, and the dividend has been reduced twice.

    I still like FTR's yield and the reduction in dividends has strengthened the balance sheet and made FTR more stable.

    This strategy is not for everybody, but there are worse places to put your money.

    Frontier is just one of many investments in the family trust and has been a part of it for almost 50 years.

    Sentiment: Buy

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    • According to yahoo charts, FTR was about $12.20 in Jan 2004. So $9.88 in divs minus about $6.50 in value, does not look to great to me.

      Sentiment: Hold

      • 1 Reply to rff815
      • FTR is/was a major holding for most (or all?) of the Helios family of closed-end funds managed by Brookfield Investment Mgmt. If you look at the last annual report for the Helios funds, you'll notice the following text several times: "The Fund was overweight in Automotive, Basic Industry, Capital Goods, Gaming and Telecommunications. (...) In the Telecommunications sector, Frontier [i.e., FTR] was the biggest driver of fund performance during the period." (Hint ... look on the bottom of pg. 2 of the document = pg. 6 in the PDF file).

        Of course, the Helios funds are high-yield bond funds, and the securities invested there are most likely FTR bonds. However, the fact that Brookfield has invested such a significant amount in FTR must reflect on their overall health as a company.

        FTR has gone down since 2004, and again since 2011. But look at the last 2-yrs. chart, and you will see where it is going nowadays. (As Sam the piano player in Casablanca says to Ilsa: "Yes ma'am ... a LOT of water under the bridge!")

        Sentiment: Strong Buy

    • Albert Einstein is said to have called "the power of compound interest the most powerful force in the universe."

    • You nailed it sage:

      "Just did a little research, and since FTR reinstituted its dividend back in 2004 I have received $9.875 per share in dividends"

      Interesting sage, so the constant DRIP has been exactly the wrong thing to have done.

      The dividend has been cut 60% in the last few years.

      In the next 10 years you will be lucky to receive $4 in dividends. I don't see how you will (or your grandchildren).

      Shows you what Maggie's deals have done for long term shareholders while she has earned the big bucks and gotten her millions of FTR shares, FTR's ability to pay dividends has followed its profitability down.

      FTR is going to owe huge retirement liabilities to the rank & file and really big retirement bucks to Maggie & friends.

    • I would agree in a down market, however we're talking democrats here. They like talking the talk. Play along now. Remember Sage, the money has run out. Yes, I thought you were selling out? What did Maggie tell you to hold? You talk about cost basis, I for one will never do that again. We can talk offline if you want, however everyone I talk to is fed up w/this company.

    • Couldn't agree more. Properly managed it beats the heck out of a money market account, CD's, and whatever other safe instruments out there. I've been in with Frontier for about 3 years now and my return has been nothing short of stellar. Of course this is not always the case with all of my investments but I'm long for now.

    • So I take it you could not get the trustee to see those shares. Maybe it will work out in time.

5.17+0.07(+1.37%)Jul 22 4:00 PMEDT