Jump to content

Dividend vs investment


maximus1987/lou99

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

http://m.seekingalpha.com/article/1605492

Link to comment
Share on other sites

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

 

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

 

AJ

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.

 

AJ

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

...although I think Buffets company BH run two issues at once with one being a silly price and another more manageable.

 

Yeah, BRK.A is down $679 already today.  It must be a penny stock by now.

 

;)

 

AJ

  • Like 1
Link to comment
Share on other sites

I bet Warren is sorting through his LP's right now for a quick garage sale so he can make rent ;-).

 

He will definitely have to cut back on his trips to Dairy Queen for a Blizzard.

 

AJ

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.

Guest
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

    • Since this is kind of the general chat thread, I have to share this humorous story (at least it is to me): Since around February/March of this year, my S22U has been an absolute pain to charge. USB-C cables would immediately fall out and it progressively got worse and worse until it often took me a number of minutes to get the angle of the cable juuuussst right to get charging to occur at all (not exaggerating). The connection was so weak that even walking heavily could cause the cable to disconnect. I tried cleaning out the port with a stable, a paperclip, etc. Some dust/lint/dirt came out but the connection didn't improve one bit. Needless to say, this was a MONSTER headache and had me hating this phone. I just didn't have the finances right now for a replacement.  Which brings us to the night before last. I am angry as hell because I had spent five minutes trying to get this phone to charge and failed. I am looking in the port and I notice it doesn't look right. The walls look rough and, using a staple, the back and walls feel REALLY rough and very hard. I get some lint/dust out with the staple and it improves charging in the sense I can get it to charge but it doesn't remove any of the hard stuff. It's late and it's charging, so that's enough for now. I decide it's time to see if that hard stuff is part of the connector or not. More aggressive methods are needed! I work in a biochem lab and we have a lot of different sizes of disposable needles available. So, yesterday morning, while in the lab I grab a few different sizes of needles between 26AWG and 31 AWG. When I got home, I got to work and start probing the connector with the 26 AWG and 31 AWG needle. The stuff feels extremely hard, almost like it was part of the connector, but a bit does break off. Under examination of the bit, it's almost sandy with dust/lint embedded in it. It's not part of the connector but instead some sort of rock-hard crap! That's when I remember that I had done some rock hounding at the end of last year and in January. This involved lots of digging in very sandy/dusty soils; soils which bare more than a passing resemblance to the crap in the connector. We have our answer, this debris is basically compacted/cemented rock dust. Over time, moisture in the area combined with the compression from inserting the USB-C connector had turned it into cement. I start going nuts chiseling away at it with the 26 AWG needle. After about 5-10 minutes of constant chiseling and scraping with the 26AWG and 31AWG needles, I see the first signs of metal at the back of the connector. So it is metal around the outsides! Another 5 minutes of work and I have scraped away pretty much all of the crap in the connector. A few finishing passes with the 31AWG needle, a blast of compressed air, and it is time to see if this helped any. I plug my regular USB-C cable and holy crap it clicks into place; it hasn't done that since February! I pick up the phone and the cable has actually latched! The connector works pretty much like it did over a year ago, it's almost like having a brand new phone!
    • That's odd, they are usually almost lock step with TMO. I forgot to mention this also includes the September Security Update.
    • 417.55 MB September security update just downloaded here for S24+ unlocked   Edit:  after Sept security update install, checked and found a 13MB GP System update as well.  Still showing August 1st there however. 
    • T-Mobile is selling the rest of the 3.45GHz spectrum to Columbia Capital.  
    • Still nothing for my AT&T and Visible phones.
  • Recently Browsing

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