Seeking Alpha

Windstream (WIN +0.6%) directors Samuel E. Beall and Carol B. Armitage recently bought 30K and...

Windstream (WIN +0.6%) directors Samuel E. Beall and Carol B. Armitage recently bought 30K and 1K shares, respectively. The purchases come as Windstream trades near its 52-week low amidst concerns its hefty dividend (current yield of 12.5%) isn't sustainable.
Comments (17)
  • those amounts are practically rounding errors
    1 Apr 2013, 04:12 PM Reply Like
  • Well, at least somebody is buying.
    1 Apr 2013, 04:14 PM Reply Like
  • These purchases are barely worthy of reporting and and are not remarkable nor inspire confidence particularly from Ms. Armitage who received $121K of $201K in cash of her total non-employee director 2012 compensation.


    What would be more remarkable is if public Boards of Directors would approve compensation for executives at a reasonable proportion to the lowest paid employee in the corporation and more importantly to growth profitability and not how peers in similar positions are compensated. This latter compensation standard is a deleterious concept which promotes mediocrity and a club environment instead of a competitive and excellent management.
    1 Apr 2013, 05:20 PM Reply Like
  • 48 year old Steve Alford signed a seven-year deal with UCLA worth about $2.6 million per year as head basketball coach, according to CBSSports. Since that is a commitment of taxpayer dollars, not the money of willing shareholders, you should be much more concerned about it than what CEOs earn.


    But I bet you aren't.
    1 Apr 2013, 08:17 PM Reply Like
  • The operative word is "earn". No objection to large public company compensation packages for independent BODs and executives but not without commensurate profitable growth and a reasonable proportion to the lowest paid employee.


    Incidentally neither taxpayer dollars nor parent high tuition funds should be utilized to fund or subsidize excessive college coaching compensation. Alumni however should be free to fund such packages.
    1 Apr 2013, 11:57 PM Reply Like
  • Management is committed to maintaining the dividend. While these are small purchases, they never-the-less demonstrate confidence in the future prospects. Century Link scared everyone with their dividend cut and sent the whole segment down. A non-issue for WIN as far as I'm concerned. Worst case scenario: they cut the div. in half. You're still getting a 6.25% yield. What is your bank paying you on your cash deposits?
    1 Apr 2013, 06:10 PM Reply Like
  • implying that this is comparable to a bank deposit is asinine, sorry. if they halved the dividend I'm sure the price would react more than the yield one would see in a year's time.
    1 Apr 2013, 06:26 PM Reply Like
  • For many, a high-dividend stock is a "buy-and-hold-forever," and for many retirees, 'forever' is just a few years. Then their heirs can decide when or if to sell.
    1 Apr 2013, 08:35 PM Reply Like
  • Yeah, but then the share price might fall by 50%, too!
    2 Apr 2013, 01:50 PM Reply Like
  • WIN management couldn't run a profitable Kool Aid stand, let alone a major corporation. They could care less as long as they get theirs.
    1 Apr 2013, 06:26 PM Reply Like
  • A 50% reduction of dividends (6.25%) would only create a BIG buying opportunity, since the share price would also drop.


    A continuing LONG investor.


    Freedom Bravo
    1 Apr 2013, 06:31 PM Reply Like
  • A scary scenario!
    2 Apr 2013, 01:50 PM Reply Like
  • Look at ALSK..., their management was committed to the dividend too. ....
    1 Apr 2013, 07:04 PM Reply Like
  • I guess the longer WIN goes without cutting the div the angrier the shorts get.
    1 Apr 2013, 08:26 PM Reply Like
  • Everyone jumping around on faulty info. Doesn't anyone check things out for themselves anymore?


    If you believe the SEC instead of a news blurb, Beall purchased 30,000 shares:

    1 Apr 2013, 09:06 PM Reply Like
  • thanks for that -- good to see someone is doing the research, I'm guilty as charged.
    1 Apr 2013, 09:33 PM Reply Like
  • I got lucky. Noted Yahoo Finance had it at 30k and thought I would check out the discrepancy.
    1 Apr 2013, 09:47 PM Reply Like
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