Any views on the BT dividend?

Moon_Boi

Do you think BT will cut their generous dividend? Looks like a good yield stock

Pssst

Good price today too. Can be bought a £1 a go as i type...got to be a bargain.

CNA Centrica is also high yield and cheap at present.

Blah99

I have a sneaking suspicion there will be a dividend cut. BT are not a happy company at the moment.

Brian_Bullocks

Moon_Boi wrote: »

Do you think BT will cut their generous dividend? Looks like a good yield stock

What is the yield on BT at the moment?

Pssst

Blah99 wrote: »

I have a sneaking suspicion there will be a dividend cut. BT are not a happy company at the moment.

Oh?
The very latest FatPhrophets report is very positive as of 9th Jan

Quote
No one should accuse BT Group of failing to move with the times. Chastised by many a few years ago for having a 'dinosaur' of a telecoms offering, the company is now one of the vanguards of "new wave" technologies. And a dynamic product suite, an expanding global footprint, and investment in technological infrastructure should set the platform for ongoing earnings growth in the years ahead in our opinion. That said, it appears the market is yet to fully comprehend this.

BT turned in a solid second quarter result. Quarterly revenues rose 3 percent to £5.1 billion, again mainly thanks to the boost in new wave business (networked IT services, broadband and mobile phones).

The real star of the show remains the Global Services division. Revenue in the quarter grew by 6 percent to £2.3 billion. Acquisitions in the US, Latin America and Asia, have changed the unit's makeup and growth potential significantly. An additional 128 new corporate customers outside the UK signed deals during the quarter.



Unquote


The only fly in the ointment is the pension scheme deficit but then who doesnt have one of those these days?


At £1 a go,they really are dirt cheap IMHO with a 52 weeks low of 106 and a 52 week high of 264 and a very good divi yield (expected 9% in 09). Very important in these days of rubbish interest rates.

Blah99

No one should accuse BT Group of failing to move with the times. Chastised by many a few years ago for having a 'dinosaur' of a telecoms offering, the company is now one of the vanguards of "new wave" technologies. And a dynamic product suite, an expanding global footprint, and investment in technological infrastructure should set the platform for ongoing earnings growth in the years ahead in our opinion. That said, it appears the market is yet to fully comprehend this.

I disagree. As well as being an amateur taxidermist and art dealer I do some work in the telecoms industry. BT's NGN ("21CN") offering is significantly delayed and isn't yet up to the standard of some competitors. Cable&Wireless beat BT to the delivery of an NGN by over a year, and is taking market share from BT in all areas, and with the recent THUS acquisition is now a fully credible alternative to BT. C&W also have massive reach into central Government infrastructures, and have now added THUS's northern capabilities. C&W are taking business off BT, and are signing huge deals on an impressively regular basis.

On the ground BT staff are being told to reign in their travelling and are suffering from cuts in investment. The basic problem BT have is a legacy of years of price mangling - it used to be a BT policy to win market share at any cost. They would bid for opportunities then deliberately undercut their competitors and take a loss to win the business. That strategy is coming back to bite them because they can't afford to continue it, and so are losing business to competitors (mainly C&W again) who are no longer being trashed by BT's pricing.

FelOn_2

Hey man, you sound like you want to biggup C&W shares.

Blah99 wrote: »

I disagree. As well as being an amateur taxidermist and art dealer I do some work in the telecoms industry. BT's NGN ("21CN") offering is significantly delayed and isn't yet up to the standard of some competitors. Cable&Wireless beat BT to the delivery of an NGN by over a year, and is taking market share from BT in all areas, and with the recent THUS acquisition is now a fully credible alternative to BT. C&W also have massive reach into central Government infrastructures, and have now added THUS's northern capabilities. C&W are taking business off BT, and are signing huge deals on an impressively regular basis.

On the ground BT staff are being told to reign in their travelling and are suffering from cuts in investment. The basic problem BT have is a legacy of years of price mangling - it used to be a BT policy to win market share at any cost. They would bid for opportunities then deliberately undercut their competitors and take a loss to win the business. That strategy is coming back to bite them because they can't afford to continue it, and so are losing business to competitors (mainly C&W again) who are no longer being trashed by BT's pricing.

ManAtHome

Looks like a bit of horse-trading coming up http://www.comms-dealer.com/industry-news/bt-takes-%C2%A3340-million-charge-global-services

sabretoothtigger

Investing for the dividend suggests you have a belief in the company and their growth ability or are just greedy

In this high yield I see just high risk imo, its a declining company and has been for years.
Their mobile division was the best thing and thats been split off and bought up now


http://uk.finance.yahoo.com/q?s=BTEC.MC

dkmax_2

Pssst wrote: »

Oh?
The very latest FatPhrophets report is very positive as of 9th Jan

"The real star of the show remains the Global Services division".

I think you should read the news more often.

http://news.bbc.co.uk/1/hi/business/7844488.stm

Telecoms giant BT has said it will be hit by a £340m ($470m) one-off charge at its under-performing global services division, sparking a share-price fall.

Many reckon on more negative news to come.

Blah99

FelOn wrote: »

Hey man, you sound like you want to biggup C&W shares.

I believe that C&W's prospects are far better than those of BT, yes. Their recent performance has been impressive, and in the last couple of years the PLC has stood on its own to make profit instead of huge losses and requiring the international business to keep them afloat.

As to whether I want to "biggup" the company, "blud", I'll keep my opinions "on the q-t", "y'get'me"?

Apologies, my full time job as the manager of a old-time steam railway enthusiast group prevents me from keeping up with the vernacular of the street.