long term d&a expense should be regarded as replacement capital.
Again I refer to BT group, for years it was running down its book, increasing debt but paying out nearly all of its earnings in dividends. naive investors just looked at the dividends and bought based on dividend yield alone.
smarter investors didn't touch the stock because by wasn't adequately reinvesting in itself.
fast forward to 2020, dividend has been cut to zero, company engaging in massive investment in broadband infrastructure assets. Dividend to be reinstated in 2021 at half its previous level, book value per share now increasing because of all the investments in itself.
what's Telstra doing???? what is the increase in Telstras book value into the future???
TLS Price at posting:
$3.05 Sentiment: None Disclosure: Not Held
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