RE:RE:Seems Quite Easy To Understand - NO DIVIDEND CUT 💰It makes no common sense at all not to cut the dividend.
Say they cut 50%. They would save a whopping $1.75B per year. With some other cost cutting measures, cashflow might actually go positive. Which means the stock would start recovering, they would start investing in customer service (out in the West we are dealing with Rogers acquisition of Shaw it is a mess, truly who wants to deal with Rogers after that) and gain marketshare. Company itself - employees, pensioners, customers, suppliers, Canada - are WAY better off doing this.
Of course shareholders lose 50% income. But its going to come out in the wash one way or another. if they don't cut, the stock price will go down because a) keep borrowing more ie EV = market cap + debt, interest cost goes up and b) not reinvesting in the business because paying too much dividend and interest. So that in the end, shareholders will ALSO be worse off.
Last but certainly not least, how much dividend is Rogers paying right now? 4%. Last time I checked, 5% is still better than 4%. Bell are not geniuses, if Rogers can only afford 4%, how can Bell afford 10%? Answer: they can't.