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Windstream Holdings, Inc. Message Board

  • kenpalley2000 kenpalley2000 Apr 21, 2014 9:43 AM Flag

    How many more consecutive dividends before doom predicters are silenced?

    I've been reading posts predicting the imminent demise of this stock, this company and this dividend for about 2 years or so. I wonder if 2 years from now, despite a continued $.25/qrtr dividend the same chorus of warnings will continue? Of course I'll have to eat crow if the dividends are cut, and I will, but I never read anyone on this board admit they were wrong when yet another dividend is announced. GLL


    Sentiment: Hold

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    • the doom predicters will stop predicting the demise after 2 qtrs of dividends where the cash flow ratio has improved to 60-65% and seems stable. Right now they are paying a dividend they can not afford, they can continue to do that for a couple more years but then they have significant debt coming due and they will not be able to refinance if the payout ratio is in the upper 70%'s as they are prediciting for 2014

      • 1 Reply to johns.patrick
      • John,
        You've brought up my major concern regarding WIN. I built a position in WIN with the expectation that WIN would be around a 65% coverage for 2014/2015. Unfortunately, on the last CC, a 67% to 73% range was mentioned. If WIN looks like it's trending towards the high end of that range in 2014, I may sell rhe remaining portion of my WIN shares. While, I'm happy with my return on WIN thus far, I'm concerned that WIN will not be able to maintain the proper capex necessary while paying out a large percentage of their cash in dividends. It might be prudent to take the chips off the table and look at other stocks until the smoke clears. I felt a lot more comfortable buying shares under $8.00 given the risk as oppose to $9.00.

    • And you won't just like the LIBERAL DEMS never admit your wrong only do what you can to cover it up!

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