(03-10-2021, 06:38 PM)Dividend Watcher Wrote: I'm confused. Why is a P/E of 20 "solid" for a company that's decreased EPS over 14% annually for the last 5 years, a payout ratio over 100% and has a debt to equity ratio of over 3x? I get that it looks a little better when you consider price to cash flow but I don't think there's much else to recommend it. I'm not even sure T has underwhelmed that badly.
Somebody needs to learn to be a little more patient.
Seriously though, they are scared to cut the dividend in half when they clearly should. This is exactly how people get sucked into a former famous brand value trap. I'll just drip that dividend for 67 years and all will be well.
Ken, remember this when you shop for your first utility too. We have charts for days demonstrating how much better off you aren't buying a no growth 4%+ yielding UTE over one that grows at 5-7%, (both earnings and dividends).