Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: Notesfiles; site trsvax.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!ihnp4!inuxc!pur-ee!uiucdcs!trsvax!tbul From: tbul@trsvax.UUCP Newsgroups: net.invest Subject: Re: Should AT&T cut its dividend? - (nf) Message-ID: <52900007@trsvax.UUCP> Date: Mon, 11-Jun-84 13:28:00 EDT Article-I.D.: trsvax.52900007 Posted: Mon Jun 11 13:28:00 1984 Date-Received: Wed, 13-Jun-84 23:42:58 EDT References: <13100002@cbneb.UUCP> Lines: 30 Nf-ID: #R:cbneb:13100002:trsvax:52900007:000:1298 Nf-From: trsvax!tbul Jun 11 12:28:00 1984 #R:cbneb:13100002:trsvax:52900007:000:1298 trsvax!tbul Jun 11 12:28:00 1984 /***** trsvax:net.invest / cbneb!gdt / 1:09 am Jun 5, 1984 */ One thing I would really like to see done is have the company cut its dividend (say by 50%). Its yield of 7.7% is much too high for the type of company the new AT&T is setting out to be. Also, I believe the stock price would act favorably to such action. Thurman (cbosgd!cbneb!gdt) /* ---------- */ One of the investment principles that I hold dear is, "Should the dividend be cut, take another close look at the stock." If AT&T cut their dividend, you can be sure that in the short term the price would probably go down. Everybody and their mother would be selling the stock because they are not clear about why the dividend was cut (can you REALLY be sure that they want to use the extra $ for internal use or is it that they ARE in trouble?). To say the least, I would find it unsettling... Take the worst case: Why not cut the dividend out entirely? What kind of reaction would this generate? Think of all the investors in it only for the 7.7% dividend. What will they do if they now get only 3.8%?? Thomas Bulkowski "Find an aim in life before you run out of ammunition." - Arnold Glasow allegra!convex!ctvax!trsvax!tbul Fort Worth, Texas O O O Official Software Engineer of the 1984 Olympics O O