Fortunately, BCE Inc. (USA) (NYSE:BCE) Inc is generating adequate cash flow to support their capital investment needs. Moreover, strong cash flow generation would indicate the ability to support future dividends, acquisitions and perhaps future share buybacks.
CenturyLink, Inc. (NYSE:CTL) – Company Description
“CenturyLink, Inc. (NYSE:CTL) operates as an integrated communications company. The company’s communications services include local and long-distance, network access, private line (including special access), public access, broadband, data, managed hosting (including cloud hosting), colocation, wireless, and video services. It also provides local access and fiber transport services to competitive local exchange carriers and security monitoring.
The company also provides local service in portions of Idaho, Ohio, Wisconsin, Virginia, Texas, Pennsylvania, Montana, Alabama, Nebraska, Indiana, Arkansas, Tennessee, Wyoming, New Jersey, North Dakota, South Dakota, Kansas, Michigan, Louisiana, South Carolina, Illinois, Georgia, Mississippi, Oklahoma, and California. It also operates 54 data centers throughout North America, Europe, and Asia.”
CenturyLink, Inc. (NYSE:CTL): Earnings and Price Correlated Graph
Clearly CenturyLink, Inc. (NYSE:CTL) appears to be a company in transition. Although the current yield is high, the reader should note the recent dividend cut (the pink line on the graph).
CenturyLink Inc: Capital Expenditures (capx)
CenturyLink, Inc. (NYSE:CTL) has dramatically increased their capital expenditures under their new capital allocation strategy. Although this strategy appears necessary for the company to establish and maintain future profitable growth in the short run, it brought with it a dividend cut. Consequently, prospective and current investors should carefully consider what the future might hold.
CenturyLink Inc: Common Shares Outstanding (csho)
In order to support their new capital allocation strategy, CenturyLink, Inc. (NYSE:CTL) has dramatically increased their share count. Clearly this is a company in transition.
CenturyLink Inc: Cash Flow (cfl) and Income Before Extraordinary Items Available For Common (ibcom)
Strong cash flow generation may be a harbinger for future growth and profitability. However, the company’s current capital allocation policies need to be further scrutinized.
AT&T Inc. (NYSE:T) – Company Description
“AT&T Inc. (NYSE:T) provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other. The Wireless segment offers various wireless voice and data communication services, including local wireless communications services, long-distance services, and roaming services. It also sells various handsets, wirelessly enabled computers, and personal computer wireless data cards through its owned stores, agents, or third-party retail stores; and accessories comprising carrying cases, hands-free devices, batteries, battery chargers, and other items to consumers, as well as to agents and third-party distributors. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T, Inc. was founded in 1983 and is based in Dallas, Texas.”
AT&T Inc. (NYSE:T): Earnings and Price Correlated Graph
The evolving landscape of the Telecommunications Services sector has had a profound impact on AT&T Inc. (NYSE:T)’s historical earnings. However, through it all, the company has maintained a steady dividend to the benefit of its shareholders.
AT&T Inc: Capital Expenditures (capx)
Like most other Telecommunications Services sector companies, AT&T Inc. (NYSE:T) has also dramatically increased capex in recent years. However, capex has leveled off over the last five years.
AT&T Inc: Common Shares Outstanding (csho)
After a period of increasing share count, AT&T Inc. (NYSE:T) has been slowly reducing common shares outstanding since fiscal 2007. Common shares outstanding have fallen from 6.04 Billion in fiscal 2007 to 5.58 Billion shares in 2012.
AT&T Inc: Cash Flow (cfl) and Income Before Extraordinary Items Available For Common (ibcom)
After weakening in fiscal 2011, AT&T’s cash flows appear to be strengthening again. This is a metric that current and prospective investors would be wise to pay close attention to. Under the new Telecommunications Services sector paradigm, cash flows are paramount for dividend growth investors.
TELUS Corporation (USA) (NYSE:TU) – Company Description
