A high yield could signal undervaluation. Besides being a round and nice number, there are probably some good fundamental reasons. Due to the lack of growth potential, the stock is actually more expensively valued than VZ in my view despite its dramatic price corrections.Ī 10% dividend yield seems to hold a magic ring to dividend investors.LUMN is suffering from a high leverage ratio and structural underinvestment. I am concerned about LUMN’s outlook for both the top and bottom lines ahead.In this case, I feel a comparison and contrast is the best way to illustrate my thesis. I will anchor my consideration via a direct comparison against VZ. Then I will explain the following main considerations to remain pessimistic about the stock despite its large price drop. I believe these lessons are of general relevance to dividend investors. In the remainder of this article, I will first summarize the lessons I learned (relearned) from the LUMN example. It directly competes with Verizon ( NYSE: VZ) and AT&T ( T).Īnd the thesis of this article is to argue against such bottom-fishing attempts. After all, LUMN (formerly known as CenturyLink) is a leading telephone company in the U.S., providing a range of services (voice, wireless services, et al) to a sizable customer basis. With such a large price drop, many investors are probably thinking about some bottom fishing here. The stock price collapsed at the same time, suffering a total loss of more than 80% as shown in the chart below (in contrast to the sector gain of 14.6%). In November 2022, the company announced the elimination of its cash dividend payouts (while authorizing a $1.5M share buyback). Indeed, the company had to eliminate its dividend shortly afterward. Plus, a casual look at the commonly quoted payout ratios (more on this later) would show that the dividend payouts are safe.Īnd the purpose of my original article was to caution investors about the high yield and point out some of the hidden warning signs – hidden from the common payout ratios. At that time, the stock was trading at a price of $9.97 per share and paid a quarterly dividend of $0.25 per share, translating into an FWD yield of more than 10%. Residential proxy, dc proxies, sneakers, server with subnet 22, server with subnet 24, server with 1024 IPs, major sneaker bots, bulk mail marketing, Adidas,Champsports, Eastbay, Finishline, Footaction, Footlocker, Footpatrol, Sneakersnstuff, Supremenewyork, Yeezysupply, dc proxy, residential proxies, subnet 22, subnet 24, server with 256 IPs, mail marketing, marketing, newsletter bulk, dedicated server, vpn, rotating proxy, Rotating Proxy IPs, center proxies, fast network, IPv4 Class C range /24 (253 usable IPs), Full IPv4 Class C range (/24),253 usable dedicated IP addresses, telecommunications, hubs.About a year ago (September 9, 2022, to be exact), I published an article on Lumen Technologies ( NYSE: LUMN) entitled “Is 10% Yield Too Good To Be True?”. Contact us for custom quotes larger than that. DDOS protection is fully upgradable to 100gbps on the order form. DDoS attacks of all shapes and sizes are mitigated automatically, without your intervention. Keycard and Biometric scanning security is utilized to gain access to datacenter.Ģ4/7 security camera surveillance with security personnel.įeni圎U can protect your dedicated server in any of our locations with on-site traffic scrubbing. We are accepting payment via PayPal, Debit/Credit Cards, Payoneer, Western Union, Bank Transfer, Bitcoin.Īll custom server will be setup in 2-3 Business Days.ĢN AC UPS systems incase of power failure.īackup Generators are routinely tested to ensure proper uptime and reliability. Monthly Price: $280/m Now Only $230/m | Setup Fee ($0)! * Individual Ips May Be Shut Down If Any Complaints Happen, Not Full /24's Or Full Account * Primary Hard Drive: 2 x 120 GB SATA 6 Gb/s 7200 rpm Monthly Price: $650/m Now Only $580/m | Setup Fee ($0)! * Ranges will not get Shut Down if listed by Spam Haus * Individual Ips May Be Shut Down If Any Complaints Happen, Not Full /22's Or Full Account * RDNS or Delegation will be done in 48 hours This is 6 month minimum commitment per the standard requirement on any and all clean residential/IPs. You would still have to pay for the server monthly recurring. This offer is available on NEW ORDER ONLY! You would get 4 months free on the cost of the IPs. Server + residential IP range from ATT, Comcast, Lumen, CenturyLink.ġ x CLEAN COMCAST /22 available.
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