Is Lumen A Safe Dividend Stock? No, But I Am Buying

Dilantha De Silva
12.3K Followers

Summary

  • Lumen Technologies is likely to cut the dividend in mid-2022 when the divestitures announced last month are completed.
  • Before evaluating the safety of the dividend, I believe a discussion on the outlook for corporate earnings is timely.
  • There is a reason why I believe Lumen is a good buy despite the possibility of a dividend cut soon.

Fiber Optics Cable
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When it comes to dividend investing, investors often look for opportunities in high-yielding REITs, and in the process, let go of other lucrative opportunities available in other business sectors. Lumen Technologies, Inc. (NYSE:LUMN) is

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This article was written by

12.3K Followers
Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of LUMN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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