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

    • I did mention it before, but I don't remember if I did post a picture of it, so I did a 2-for-1 special the second time around. Ah, so that is what I saw. I walk by Boys and Girls field if the C train takes forever to show up in the late evening, but I cared more about getting home than investigating it lol
    • August update finally arrived for S22+ unlocked tonight 👍
    • You also snagged a shot of the new oDAS in there, too.    I also spotted one while on LIRR above Atlantic Ave. They’re starting to really get rolled out now.
    • I have added T-Mobile eNB 879366, a Sprint convert site, to the list of gig+ sites, as I was able to break the 800 Mbps ceiling with it. I'm still trying to understand the DAS mess at LGA and locate them, but the bad thing about it is inside the terminals I can occasionally pick up the macros inside. It anchors 5G, which is great for a speed boost, but occasionally data hangs because my device is having a handoff frenzy trying to pick the best macro and/or band for the 5G connection.   I have spotted 2 more Dish sites, one on the corner of Church Avenue and East 16th (photo below), and the other is an in progress site co-located with Verizon eNB 81069.   At Verizon eNB 81069, the ports on the Dish panel weren't connected yet, brand new racks were being used on the roof Verizon is on, and it looks like Sprint's equip is still up on the building next door.
    • Neat!  Thanks.  Most of my issues at the moment are from inexperience.  I've never used AT commands and I'm bad at Python.  I'm not really sure what the best way is to send AT commands to the modem; socat seems to work, and there are Python libraries that should do it, but I don't really know what I'm doing.  - Trip
  • Recently Browsing

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