| To: Jon Koplik who wrote (2026) | 7/22/2023 2:15:59 PM | | From: Jon Koplik | | | | Barrons / reader comments / re : AT&T and Verizon’s Dividends ...........................................................
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Manning Outen
5 minutes ago
I agree, nice dividend and cash flow. Buy V. Lead wire is coating is not in water or friable
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Nick Politakis
37 minutes ago
Both T and VZ are awful investments and the reason is they are in a no growth business that generates a lot of cash. I wish Apple or Microsoft would acquire them both and put the out of their misery.
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Katherine Delorenzo
45 minutes ago
A few points:
This is a problem with a long timeframe toward resolution. Company response aside, the potential for health-related lawsuits, congressional action, etc will likely hang around for a couple of decades. Other companies (JNJ, 3M, etc are useful examples).
A company that has already cut a dividend is generally viewed as more likely to do so again, regardless of reassurance.
Current leadership is still cleaning up the cost of past poor management mistakes.
The stock may look like a good deal for opportunistic investors and a value trap for longs, but those holding at a loss are likely to see it as a TLH candidate before year's end.
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Nils Wessell
2 hours ago
From $43 stock in 1999 to $14 in 2023. What's not to like about T's management.
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ANGELO KOKENAKIS
3 hours ago
In 1999 T was a 50 dollar stock. Dead money since 1999.
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George Chimento
16 hours ago
Every basis point of dividend cut will cause the stock to appreciate by much more. Management compensation is tied to stock price and they probably get new grants every year. Repricing by a compliant Board also likely in order to "retain talent." The dividends will be cut. Count on it.
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Gregory McCulley
16 hours ago
My advice after the WSJ article came out was to buy VZ and not eat lead wrapped cable, which I followed.
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Nils Wessell
2 hours ago
LOL
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David Walker
19 hours ago
Make sure to remember the analysts cited in the article jumping on board
with no hesitation for an immediate downgrade for both telecoms based on
lead cable liability ..Cusick, Rollins and Heger ... check back how well they
did a year from now... if you have investments with their respective firms .. or
are just curious
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Patrick Frank
2 days ago
Try my math. There are four prominent 8% out there: T, VZ, BTI, MO. Consider them as a group and make equal weight investments in them, as large or as small as you have stomach for. I like the idea of either 1% or .5% of your portfolio. That means either 2% or 4% of your portfolio is drawing over 8%. Consider: 1) all dividends are covered by cash flow. 2) Each board is well aware the market price of their stock is tied to the dividend. 3) there is no immediate risk of cut for any of them.
Riskless risk. Better than a junk bond, because none of them is going to zero.
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Timothy Mortimer
2 days ago
I would think that T and VZ mgmt would do everything they could do to spread-out the costs of remediation so that the companies' dividends aren't seriously threatened. Since the companies' dividends are relatively so high, and their growth prospects relatively so low, their mgmt surely understands that the dividends are the primary reason for the market's demand for the stocks -- and, therefore, any serious cut in dividends would really tank the stocks. Therefore, mgmt is surely loath to cut the dividends (...any further than they've already been cut, that is).
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George WEHRLIN
2 days ago
If all these Cash flow etc type numbers are so wonderful.... Why was the stock selling so cheap prior to this lead issue??
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Timothy Mortimer
2 days ago
Ans: Relatively meager prospective growth in a stock market obsesses with growth?
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Philip Reed
2 days ago
This is not nuclear waste, it is very tradable copper and lead. Put a containment sleeve on the ancient cable as it is rolled up and take it to local metal recycle facility.
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David Abel
19 July, 2023
AT&T shares having one of their best days in some time.
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Stanley Davis
19 July, 2023
Did anyone take into consideration that all of the "toxic lead" in telephone cables would still be leaching into our soil, ground water, rivers and lakes if the lead ore had remained in the ground locations they were taken from?
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Dan Laramie
19 July, 2023
It's a lead-pipe-cinch that all of those medical ailments will be blamed on the lead. Its not just getting the lead out you're betting on, it's also the health effects that it is accused of. Most of us had mercury, in our teeth, which is well known to cause insanity (how would we know?), just ask the Mad Hatter. But the dentists quietly ground it out, and flushed it down the drain, into the water table. Nobody was held responsible because nobody had deep pockets, like AT&T does. So you're not betting on the health effects, you're betting on what the courts will decide, and if anybody is going to lose, its the one with the most money, who put the cables there in the first place. Here in California we are trying to decide whether to pay the ancestors of the slaves we never had, and we just might. So I wouldn't bet against T paying for the lead poisoning, because they can.
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Rich Dobson
19 July, 2023
VZ and T already have concerns about growth, due to competition. This is just another thing to worry about. I would want to know first where the growth is going to come from. The competitive landscape is changing and that is a negative for them. I would study it all very closely before going in.
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Leonard Pham
19 July, 2023
Another risk could be class action lawsuits. I wonder if the calculations above take into account the potential for future settlements with plaintiffs.
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Bill Lyerly
19 July, 2023
This might make it harder for these companies to upgrade their networks and offer services in the future?
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Henry Kolpin
19 July, 2023
As a former chemical plant employee and purchaser of chemically resistant materials. I can say that every location of the lead shielded cables can be different. The fear of lead leaching into water, soil and air could well be different for every location. As crazy as it sounds lead in Lake Tahoe may be perfectly safe and the lead in the rivers and swamps of the south could be very dangerous due to those variations of conditions, water PH, temperature, etc. etc. and a variation of the lead manufacturers composition of shielding could also be a factor. So right now there is no clear answer.
A complete study and case by case review needs to be done just as ATT says.
Everything could turn out to be perfectly safe, so lets do the science.
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Frank Anderson
19 hours ago
What is your best "guess?"
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Ernest Montague
19 July, 2023
I agree with doing the science, but "Everything could be safe is a trope." There are problems, how big they are remains to be seen.
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Dan H
19 July, 2023
Thank you.
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Edward Winslow
19 July, 2023
Somebody is certainly short both T and VZ.
No doubt someone got wind of this WSJ article prior to publishing and made a fortune by shorting.
At some point the shorts will have to cover.
Maybe it's me, but it sure seems like more often than not Wall Street analysts lower their rating near the stock bottom and increase their rating near the top.
Could part of their compensation be based on stock price performance vis a vie their opinion and rating???
Of course.
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MIKE DIMASE
2 days ago
So true, so true! In the last couple of years Barron's recommendations have followed the same path. A stock will get recommended at its 1, 3, and I've even seen 5 year high. Ridiculous!
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Ronald Schipper
19 July, 2023
This is why no one can trust WS
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Gary Leonard
19 July, 2023
How many stocks are at a 30 year low? T is. The dividend has already been cut.
Why even bother with this stock?
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Warren Rossenberg
19 July, 2023
From legal point of view, the costs of potential damages caused by the Bell Comp. will share the successor company and the US Government because at that time the lead cables were considered safe.
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| | Verizon Communications (VZ) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
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| To: Jon Koplik who wrote (2027) | 7/22/2023 2:19:13 PM | | From: Jon Koplik | | | | most interesting reader comment ( I thought ) .......................................................................
Henry Kolpin
19 July, 2023
As a former chemical plant employee and purchaser of chemically resistant materials. I can say that every location of the lead shielded cables can be different. The fear of lead leaching into water, soil and air could well be different for every location. As crazy as it sounds lead in Lake Tahoe may be perfectly safe and the lead in the rivers and swamps of the south could be very dangerous due to those variations of conditions, water PH, temperature, etc. etc. and a variation of the lead manufacturers composition of shielding could also be a factor. So right now there is no clear answer.
A complete study and case by case review needs to be done just as ATT says.
Everything could turn out to be perfectly safe, so lets do the science.
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| | Verizon Communications (VZ) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| To: Ms. Baby Boomer who wrote (2030) | 8/16/2023 2:55:20 PM | | From: nicewatch | | | | | I guess time will tell. A retest of 52wk lows doesn't seem that silly to me but to get to 28s or lower this year might take a much weaker overall market and some more negative news about leaded pipe removal or whatever the next negative exogenous surprise is. Moreover, by the time it gets there, plenty of stories will pop up about "blue chip" VZ trading at 15-20 year lows. I still think it's a value trap, and not for me but wish you all the best chasing that yield. |
| | Verizon Communications (VZ) | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
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