Lumen: 8% Yield, 12% Debt Reduction, Undervalued, Strong Dividend Coverage

Summary

  • LUMN yields 8.5%, with a 54% payout ratio - a 22% improvement.
  • Mgt's top priority is to maintain the dividend, which they've kept at $.25 since Q1 2019.
  • Debt and debt leverage have improved by 12% vs. 1 year ago.
  • LUMN looks very undervalued vs. its peers.
  • We compare valuations, leverage and profitability vs. LUMN's peers.
  • Looking for more investing ideas like this one? Get them exclusively at Hidden Dividend Stocks Plus. Learn More »

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Today's telecoms are much different from those of days past, having to move into other business offerings in order to fight the attrition associated with traditional landline service.

Formerly known as CenturyLink, a legacy telecom, Lumen Technologies (

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This article was written by

40.26K Followers

Robert Hauver, MBA, aka “Double Dividend Stocks” was VP of Finance for an industry-leading corporation for 18 years and has been investing for more than 30 years. He focuses on undercovered and undervalued income vehicles and he leads the investing group Hidden Dividend Stocks Plus.

With Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at a time including links to associated articles, a dividend calendar, weekly research articles, exclusive ideas, and trade alerts. Learn More.

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.

Disclaimer: This article was written for informational purposes only, and is not intended as personal investment advice. Please practice due diligence before investing in any investment vehicle mentioned in this article.

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