Forum Archive Index - August 2000

["Colin Ross" <ceejaynz@xtra.co.nz>]

We hold TEL for Income (Quarterly) so not too impressed with this
announcement.
Horses for courses ?
Ceejay
----- Original Message -----
From: Ben Dutton <bendutton@sharechat.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Tuesday, August 15, 2000 12:07 PM
Subject: [sharechat] TEL Drops Dividend


> 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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