| In 2023, the federal government required T-Mobile and Sprint to divest certain assets in order for their merger to go through. Cogent took over those assets and - in the deal of the century - was even paid to do so. But once the deal was complete, it required an infusion of capital for Cogent to upgrade the network. It's like those deals you may have heard of where a town in Italy will pay you to move there or give you a house for next to nothing, but you have to commit to fixing up the place. Anyway, the additional capital expenditures resulted in Cogent's free cash flow going negative. Last year, the company had a net outflow of $204 million in cash - and that doesn't include the $189 million it paid out in dividends. Based on those figures alone, the outlook for Cogent's dividend looks pretty bleak. But it's not all bad... |
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