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#LUMEN DIVIDEND YIELD HOW TO#
#LUMEN DIVIDEND YIELD FREE#

Capital returns are likely to be high on investors' wish lists.Īre Investors Worrying About A Dividend Cut?.

Money must be spent on new growth opportunities (particularly in fiber) and.

The balance sheet still needs to be repaired because the company had approximately $28 billion in long-term debt.

Three areas compete for Lumen Technologies' resources in particular: This will be the most important question for investors moving forward, as Lumen Technologies will need to present shareholders with a convincing plan for allocating its newly discovered wealth.

#LUMEN DIVIDEND YIELD HOW TO#

Lumen Technologies now faces a luxury problem in determining how to spend the $7 billion in cash proceeds from the recent transactions.

Lumen Technologies will receive a total cash infusion of approximately $7.0 billion. Lumen Technologies has scheduled its third quarter earnings presentation for November 2, 2022, providing an opportunity for management to substantiate future capital decisions, particularly with respect to the $7 billion that the company will receive from recent transactions (including proceeds from the $2.7 billion sale of its LatAm operations to StonePeak). ILEC Operations (Lumen Technologies) How Is Lumen Technologies Using Its Cash Infusion? Lumen Technologies will keep its incumbent local exchange carrier assets in 16 states, totaling approximately 2.9 million fiber-enabled units. In August, the Federal Communications Commission of the United States approved the sale of Lumen Technologies' ILEC assets. The deal, which is intended to streamline Lumen Technologies' carrier operations, was announced more than a year ago and was finally approved in the third quarter.Īccording to a press release dated October 3, 2022, Lumen Technologies has now officially completed the transaction with investment funds managed by Apollo.

Lumen Technologies' ILEC transaction, which required the sale of incumbent local exchange carrier assets in 20 states, has been completed.

#LUMEN DIVIDEND YIELD FREE#

Given that free cash flow risks are low and the valuation is extremely low, I think LUMN remains a top buy. Lumen Technologies now has the opportunity to lay out a capital framework, which I expect it to do on November 2nd when it reports 3Q-22 results.įurthermore, the recent selloff in Lumen Technologies has increased the stock yield to nearly 14.5%, indicating that the market anticipates a dividend cut. ( NYSE: LUMN) announced this week that it has officially completed the sale of its ILEC assets to Apollo-managed funds, clearing the way for a total of $7 billion (including proceeds from the recently completed sale of its LatAm assets) to find its way onto Lumen's balance sheet and opening a new chapter in the company's development.