No need for concern about div exceeding eps as cash flow covers it. Cash flow will look good for a while as NBN pays off it's debt to TLS - incurred by buying our copper and hybrid fibre/copper assets.
All the whilst TLS has sufficient franking credits, these sales proceeds will be be paid as divs, but there will be buybacks and asset purchases along the way. It is definitely possible that TLS will remain paying good dividends for many years to come.
A little spoken about industry comment that is relevant here - communication tech is and will likely remain a capital intensive industry. These sorts of industries evolve into duopolies or monopolies. At present we have 6 contenders (TLS, NBN, VOC, TPG, Optus and Vodafone. My betting is that in 10 yrs there will be 2 - and one of these will be TLS.
I am not an analyst - dyor.
No need for concern about div exceeding eps as cash flow covers...
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Last
$3.89 |
Change
0.040(1.04%) |
Mkt cap ! $44.94B | |||
| Open | High | Low | Value | Volume |
| $3.86 | $3.90 | $3.85 | $66.87M | 17.23M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 311462 | $3.87 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.89 | 133931 | 11 |
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| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| TLS (ASX) Chart |