Windstream Corp (NASDAQ:WIN)

CAPS Rating: 2 out of 5

The Company is a provider of telecommunications services in rural communities in the United States. Its subsidiaries provide local, long distance, network access, video services and broadband and high speed data services in sixteen states.

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Player Avatar samini (< 20) Submitted: 2/20/2013 2:35:56 PM : Outperform Start Price: $7.58 WIN Score: +7.08

Assume they cut the dividend by 50%. Then would people be convinced that they have enough cash flow to cover their debt, dividend and Capex and continue to grow? If they have been able to give $1.00 for 5 years, surely, they can do it at half the rate right? Now at $0.50 the dividend would STILL yield 5-6%. So you get a growth stock with 5-6% dividend to boot.

Now let's say by their growth businesses execute as expected and they don't cut the dividend. You get 10%+ dividend with growth.

WIN-WIN situation.

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