Cost Savings Should Help Maintain Dividend

Article Excerpt

MANITOBA TELECOM SERVICES INC. $47 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; SI Rating: Average) fell to $37 in February 2006 over fears that losses from its Allstream business telecom unit would force it to cut its $2.60 dividend, which yields 5.5%. But the stock has gained 25% since then, as it appears its aggressive restructuring plan is beginning to pay off. In the three months ended June 30, 2006, the company earned $0.75 a share from continuing operations, unchanged from a year earlier. Revenue fell 2.4%, to $490.1 million from $502.2 million, as lower long distance and local service revenue offset strong gains from its wireless and high-speed Internet operations. Manitoba Tel is a buy. buy…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.