Why do some firms with high capital expenditure and loaded with a lot of debt (like tech & telecom firms) still issue dividend to shareholders? What's the point?
| +439 | Female bankers doing brand deals on TikTok | 119 | 3h |
| +142 | UBS rolling out Enhanced Clean Desk Policy, bans deal toys | 16 | 3d |
| +100 | Starting FT in a city 3 hours away, dad has progressing Parkinson's. Looking for advice. | 8 | 1d |
| +73 | JULY 2026 CHICAGO BANK RANKINGS | 29 | 1h |
| +64 | Restructuring is paradise (a completely unbiased account) | 6 | 4d |
| +37 | Not Treated Well by Other Interns | 20 | 1d |
| +36 | Handling frustration | 5 | 4d |
| +35 | Taking days off as an intern | 17 | 3h |
| +28 | Thoughts on Intrepid - Houlihan Merger | 10 | 3d |
| +27 | IB TikTok Influencers (wehave2wizards) | 9 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
They have steady, predictable streams of revenues that can be accurately projected out into the future - particularly telecom firms which are really like utilities. Yes, they have high CapEx, but generally, they still tend to generate mountains of cash that they can't easily put to work.
Additionally, they drive high dividend payouts (1) because the management teams may not have a clue about value accretive new initiatives for that capital (2) because they think their multiples are substantiated by their high div payout (e.g. a disproportionate amount of inst fund managers buy their stock for income instead of appreciation)
i think the fed offers a good dividend(they sure are loaded with debt)
Expedita provident distinctio temporibus. Ducimus neque qui enim autem. Architecto id quia beatae aspernatur aliquam est mollitia.
Esse inventore et excepturi et ut laudantium. Non et vel suscipit incidunt nostrum assumenda repellat quia. Quaerat id omnis ea adipisci magni recusandae. Et velit voluptates occaecati dolor in atque velit ipsa. Tempore expedita fugit et sed temporibus. Impedit sit est exercitationem. Sed corrupti magnam atque ducimus laudantium et necessitatibus animi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...