Jump to content

Dividend vs investment


Recommended Posts

How do wireless companies decide the split between dividends and investments?

As a reference, TDS/USM said:

On its Q2 earnings call, TDS' executives outlined a 75%-25% split in deploying capital; 75% would go towards investments in the business, both organic and inorganic, and the remaining 25% would be returned to shareholders, via both buybacks and dividends


Link to comment
Share on other sites

A company will invest their money if they believe there is opportunity to grow the company and/or expand their market share.


A company will return money to investors via buybacks and/or dividends if they have no better use for the money and/or shareholders expect periodic income from their investment (stock) in the company.


Sprint has had terrible losses of money over the past ~7 years, so they distribute no dividends. Lots of their (borrowed) money go towards investment, such as Network Vision.

Link to comment
Share on other sites

They spin the wheel of fortune, read tea leaves, or rely on voodoo.



Frankly, I've always found voodoo to be the most inexact of the methods of the science of fortune telling. A direct binary stream of the universe works much better. Ah, if only Fate was as easily parsed as XML...

Link to comment
Share on other sites

This is a balance between firm growth and ownership loyalty. 


One hand, a firm needs to keep growing in an efficient and effective manner to spur revenue growth.


However, depending on the stockholders, return of equity is required in one way or the other (i.e., dividends, stock splits or stock price growth).

  • Like 1
Link to comment
Share on other sites

What they said :-) Plus the ownership structure of the company plays a part, or more accurately if a significant number of shares are held by rich individuals who wish to make a quick buck. If a company is basically proffitable but has previously been over valued and or is seeing it's share price drop like a hoores droors then there is an incentive for 'vultures' to buy a big enough stake in the company to have sway and force the company to distribute any 'warchest' and have the company borrow and return all that to the shareholders. Dell and Apple are recent examples. The short term attraction drives up the price long enough for the original vulture to sell their shares and make off with the bounty leaving a house of cards behind them.

IBM have been returning value for more conventional reasons mentioned above plus there is a hint of CEO pride, they want a stock split. It's basically some kind of tradition where they get a cookie or something as a reward. When the stock gets so high in price they split each share and reissue so the price per share is more manageable, although I think Buffets company BH run two issues at once with one being a silly price and another more manageable.

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • The DAS at LGA Terminal B actually has n41 at 100+20, but if you are deprioritized, good luck on the busy days, as all the bands are congested, even B41 and n41, with data being worse than 128kbps international roaming. It has SA active for n41 as well. The L train tunnel is actually 80+20 for n41, with SA n41 active. Speeds aren't anything compared to Philadelphia's DAS system that has n41 though. The gig+ upgrades are expanding, as eNBs 894588 (Sprint convert site) and 55987 can both pass 1 Gbps now. Clocked nearly 1.3Gbps on eNB 55987 today.
    • Hopefully this goes thru!  https://www.reddit.com/r/tmobile/comments/1211mh7/tmobile_files_another_sta_application_to/
    • Yup 80MHz C-band + 40MHz DoD for a total of 120MHz. They should be pretty well setup post-clearance. — — — — — Famous Verizon site on Atlantic referenced in this reddit post got moved to the top of the building next door. — — — — — Also looks like I mapped a T-Mobile oDAS node eNB 347812 in Brooklyn Heights. Streetview shows it as one of the CC nodes with no antenna on top as of May 2022 but this specific eNB was first mapped this month. I didn't notice that I mapped it until I got home but the range on it is significantly greater than the normal "antenna-less" nodes T-Mobile deploys. I'm wondering if it got upgraded to the new 5G oDAS design but I won't be able to check it out until next weekend.  
    • I didn't know they had access to 80 MHz of c-band that does change some things then once that's online
    • While I've been loath to update my Samsung devices past the May 2022 update to keep the Band Selection tool, I note that it looks like Android 14 is going to add Timing Advance for NR to the API.  (Was looking today as I have another Verizon A42 5G now that I'm going to unlock for T-Mobile, and wanted to figure out if I should let it update or not.)  Since I can technically make band changes from *#73#, on the A42 5Gs, I can probably live without the Band Selection tool if a later Android version adds something useful like TA values. I assume SCP will be updated to support that once it becomes publicly available.  The real question is whether or not the phones will support it.  My S21FE and A42 5G devices do on LTE, but I know the S22 and the A32 5G do not support it even on LTE, providing just zero in that field. - Trip
  • Recently Browsing

    • No registered users viewing this page.
  • Create New...