Forum Archive Index - August 2000

["Ben Dutton" <bendutton@sharechat.co.nz>]

Extract from TEL Press Release

Dr Deane said investments for future growth, including some yet to be
identified, require Telecom to maintain strong cash flows and financial
flexibility.

"Given our growth outlook, a change in our dividend policy is now
appropriate," Dr Deane said. "Going forward, Telecom intends to make an
annual dividend pay out of around 50% of net earnings. This target will, as
in the past, depend on the level of Telecom earnings and cash flows, and on
any particular investment opportunities which might arise."

**

In light of the recent discussion on the ShareChat Forum with regards to
dividends, I find the above turn-around by Telecom interesting.

Personally, I think that this change in strategy is a *good thing* for
Telecom's future as a competitive, flexible and expanding company.

There could be downside (and TEL dropped like a stone after the market
opened this morning) as some investors sell, but IMHO this strategy will
ultimately pay off for TEL.

I'd be interested in finding out other chatters opinions.

Best Regards,

Benjamin Dutton


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