Yea, maybe one day Telstra will want to make significant capital investments (eg electricity generation), but doesnt want to increase debt, abandoning a dividend for a few years should be on the table for consideration in that scenario, an alternative might be a capital raise... Or maybe interest rates Telstra is paying start going up next refinance, so they decide its in the long term interests of investors to reduce debt...
And wWhen you say dividends are important to you, i read that as income is important to you.
If there isnt a 16c dividend, but you shares are worth 16c more every year (due to EPS growth), the only difference is you would have to pay brokerage to get equivalent of your dividend. Your net investment would stay the same.
TLS Price at posting:
$3.05 Sentiment: Hold Disclosure: Not Held
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