adm@cbneb.UUCP (06/04/84)
#N:cbneb:13100002:000:521 cbneb!gdt Jun 4 11:14:00 1984 Many people I work with are concerned about their AT&T stock. I, myself, feel fine about it if one can hold out for 2 or 3 years. 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. I'm interested in hearing other opinions on this subject, regardless of where you work or go to school. Thurman (cbosgd!cbneb!gdt)
tbul@trsvax.UUCP (06/11/84)
#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