From Shares Magazine
UK telecoms giant BT (BT.A) appears to be softening up investors to a future cut to its £1.5bn a year dividend as it balances rising fibre roll-out investment. BT’s management estimate that it will cost an extra £400m to £600m a year to accelerate the rollout of its fibre-to-the-premises network. There are several potential levers to pull to free up additional funding, including deeper cost cutting or taking on more debt. However, BT chairman Jan du Plessis appears to favour rethinking shareholder payouts, hinting at as much during BT’s shareholder meeting on 10 July.
We shall see