Small Telcos And Their Dividends: Part 2

This series deals with relatively small telecommunications companies and focuses on the sustainability of their dividends. The first article dealt with the larger of these companies. This article deals with the smaller companies within the group. As I have researched this, a few points have begun to jump out at me. First of all, although there has been consolidation, there is still a considerable amount of ongoing takeover activity within the sector. This makes annual numbers a bit confusing because a given year can include some months before a merger and some months after a merger has been completed. There are also some one-time transitional costs associated with these transactions. As the industry moves away from traditional telephone service (I just saw a movie in which one actor has the line - "Can you find a payphone ANYWHERE now??) - there will be considerable capital expenditures and... Read more