https://youtu.be/2zA0wBCMmbk?si=LNQEIs0J8r-IvL5L
Thoughts?
Veritas does have a 'sell' on the stock, with a target price of $19. If we look at the Q3 report, we see operating cash flow of $3.7B in the nine months ended Sept. 30. This compares to dividends of $1.2B in the same period. There is certainly a big cushion on operating cash flow vs dividends. So the question becomes what else does T spend money on? Its network is a big use of cash, and it spent $2.4B on the 'acquisition of fixed assets' in the last 12 months. Even so, its free cash flow in the trailing 12 months was $2.3B. The financials do not indicate any particular dividend concerns. Now, if spending were to increase, or cash flow decrease, then obviously there is less of a cushion. But the dividend seems secure right now. We also note T raised its dividend on Nov. 7, and it also raised its dividend in May of this year.