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Is BT (BT-A) heading for a cut?

Practical discussions about equity High-Yield Portfolios (HYP) for income
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IanTHughes
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Is BT (BT-A) heading for a cut?

#237744

Postby IanTHughes » July 19th, 2019, 12:12 pm

Maybe yes, according to some ….

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


Ian
Moderator Message:
Link to article added (since it is required by our rules and is available). - Chris

Dod101
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Re: Is BT (BT-A) heading for a cut?

#237752

Postby Dod101 » July 19th, 2019, 12:32 pm

IanTHughes wrote:Maybe yes, according to some ….

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


Ian
Moderator Message:
Link to article added (since it is required by our rules and is available). - Chris


'Irrespective of the buys by the new CEO, I am thoroughly unimpressed by the prospects for BT. The reasons remain as before; the big pensions deficit and (like Vodafone) the very large capex pending. Unless you have a very long timeframe, forget it as a HYP share.'

I wrote the above on 4 July on the other thread for BT (BT-A) heading for a cut? where it has been thoroughly discussed. You may want to take a look.

Dod

SentimentRules
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Re: Is BT (BT-A) heading for a cut?

#237756

Postby SentimentRules » July 19th, 2019, 12:42 pm

Imo sector ia screwed until vod and bt reset div debt to 0%. Margins too tight and debt too much to bring value investors in. And what good is a stock to an income investor when the valve investor class dislike it

Shorters are targeting 181.20 now. I'm not short here as I'm in a Vodafone short.

But that's the next price to assess I would think. Below that and they will have to cut. No choice.

idpickering
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Re: Is BT (BT-A) heading for a cut?

#237764

Postby idpickering » July 19th, 2019, 1:14 pm

BT.A are currently at 188.3, and not far off the year low of 187.2. I do like to buy when shares are cheaper, it may well be that a divi cut is priced in now, such as is the feelings towards the stock. I don’t know, but I’m sticking with my top up of this share next Monday.

Ian.

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Re: Is BT (BT-A) heading for a cut?

#237777

Postby idpickering » July 19th, 2019, 1:43 pm

SentimentRules wrote:
Who knows you may be right to buy Monday. Or you may be 50% too early. No such thing as a cheap share. Only a perception exists.

Surely that's an analysis for Monday? To buy or not


Thanks for your input. I don’t claim to be an expert, but I am well known for dithering in the past regarding my monthly top up decisions, hence the term ‘Pickering’ that you might’ve seen hereabouts. I’ve mulled this over for weeks, and am happy to proceed with the buy. I’m also topping up my Direct Line holdings too. As for BT.A, I might be wrong, or.....

Ian.

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Re: Is BT (BT-A) heading for a cut?

#237778

Postby SentimentRules » July 19th, 2019, 1:45 pm

Ah monthly top ups. Thats different. Sorry i thought you just meant all in , guns blazing lol

idpickering
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Re: Is BT (BT-A) heading for a cut?

#237780

Postby idpickering » July 19th, 2019, 1:50 pm

SentimentRules wrote:Ah monthly top ups. Thats different. Sorry i thought you just meant all in , guns blazing lol


No problem. I’ve held BT.A for years, and I agree it’s not the best HYP share, but for me, with regards to my HYP diversification, they merit a top up.

Ian.

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Re: Is BT (BT-A) heading for a cut?

#237880

Postby csearle » July 19th, 2019, 7:21 pm

Moderator Message:
A few deletions of off topic posts made.

88V8
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Re: Is BT (BT-A) heading for a cut?

#238109

Postby 88V8 » July 20th, 2019, 8:01 pm

The pension deficit rules it out for me.
And if Corbyn gets in, it's an odds-on that in one way or another they will lean on companies to prioritise their pension funding over dividend payments.

V8


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