Bt Share Discussion Threads

[montyhedge] 21/2/2020 12:22

They may do, would still yield above FTSE 100 median if they did.I like BT not effective by Coronavirus, funds will be switching out of oil, travel into telcos and tech if it goes on this Coronavirus.

[bargainbob] 21/2/2020 12:14

It would be better to trim 30 per cent though Monty to pay down extra debt.

[dmf] 21/2/2020 12:00

EssentialInvestor6 Feb '20 - 14:53 - 34179 of 34317
0 1 0
DMF, the dividend in uncovered.

It's not surprising people may be unsure on this as
there have been numerous articles citing dividend cover.

Confusion may arise if you do not allow for the pension
recovery plan.

If the dividend Was covered, net debt would Not be increasing.

[montyhedge] 21/2/2020 10:41

If I had to bet, I would say yes, BT is a cash cow.

[cassini] 21/2/2020 10:34

Short answer: nobody knows for sure.
Long answer is below:
The historical dividend cover (i.e based on last year's figures as we don't have the full divi details or operating profit for 2020 of course) is variously reported as 1.41, 1.47, or 1.7, depending on what website you look at. I've no idea why they don't agree.

Therefore the divi is covered by operating profits. Not by much, but big, mature companies (Imperial Tobacco springs to mind) are in similar dividend cover territory, although the stock market doesn't like such a low ratio. No one can make any assurances the divi is safe though. It is up to the management of BT in the light of events (2020 profit figures etc) as to what the divi will be.

Just on gut feeling though, I imagine the full divi will be paid this year. The final dividend has been fixed for the last four years, I wouldn't bet against it being the same this year.

[stevenrevell] 21/2/2020 09:55

Is it safe

[cassini] 21/2/2020 09:54

Divi is about 10% off the top of my head.

[stevenrevell] 21/2/2020 09:45

What's the divi on this

[diku] 21/2/2020 08:26

Anybody know how much debt came with EE purchase?...

[ekuuleus] 21/2/2020 05:27

Hmm

When it comes to assessing the market valuation, you need to add the net debt in. Really, the current company valuation is £15B market cap PLUS the £35B debt. So really, the value is £50B. The increase in debt is being matched by a decrease in share price.

The share is very tightly coupled to the dividends - what ever happens to the divi, the share price follows.

The market is saturated.

The government won't let it go bust but will limit any help.


I'm tempted at 150, but can see this continuing to 80 pence.

[my retirement fund] 21/2/2020 00:39

Whilst they do have the equivalent of a decent copper mine as an asset, in reality it will be extracted piece meal when we are practically wireless and redundant over the next decade and the majority of the donkey work won't kick in for several more years after the inaugural insolvency when of course you lot will have been wiped out !!

[diku] 20/2/2020 22:44

Hello bob...

[bargainbob] 20/2/2020 21:17

Diku stop stalking me.

[diku] 20/2/2020 20:25

It means Good RNS...as in ABC...

[toon1966] 20/2/2020 15:52

Please define ‘Good RNS’...

[montyhedge] 20/2/2020 15:37

Personally I think your see this back over 200p, no problem with a few good rns announcements, no one can live without the internet.

[toon1966] 20/2/2020 15:14

“Be like Monty”.... you have to be joking!!!

[bargainbob] 20/2/2020 12:46

Be like monty Bt place to be .

[montyhedge] 20/2/2020 12:40

Hopefully fund managers seen sense and rotating out of oil and gas shares into Telcos and tech.
BT not effected by Coronvirus, domestic sterling stocks the place to be.

[montyhedge] 20/2/2020 10:07

When rotation into telcos start thats when the run starts.