IB Net Payout Yields Model

Windstream: Stop Focusing On The Dividend Yield

  • Investors should focus on the solid free cash flow.
  • 12% dividend is abnormally high due to investor fear.
  • Company should consider a more flexible capital allocation strategy.
The typical investor interest in Windstream (WIN) centers on whether the company can continue paying out a $1 annual dividend that equals a 12% yield. The bizarre focus on what the company pays out to shareholders has investors looking in the wrong direction.

Windstream is a provider of advanced network communications to businesses and consumers primarily in suburban and rural areas. The company continues to transition from legacy voice consumer services to more advanced cloud computing, managed services, broadband, and digital TV services.

Read the full article at Seeking Alpha.

Disclosure: Long CTL. Please review the disclaimer page for more details. 


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