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Another paltry dividend.

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striker
Super Contributor
Listed for 15 years,and the div.yield still around 1.6%.Are all the die hard MTN fans still convinced ??
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19 REPLIES 19
Not applicable
In the long run i.e when MTN is done with aquisitions, penetrations to other countries' cell phone territories then they will start paying good dividends. The share price has a growth potential and patience will pay off.
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SimonPB
Valued Contributor
surely MTN is still growth so they need the cash ??
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striker
Super Contributor
Fifteen years and still preserving cash? Problem I have is there are many other great growth stories out there,that dont need that long. Would'nt like to miss out on those ,while MTN yields me 1.6%,along with a stagnant share price. OMO.
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THRESHOLD
Super Contributor
What growth? Growing an asset which is defunct and sans cash generating ability going forward. Bandwidth is free (just about.) Why on earth do people believe that cell carriers will get to continue to charge anything for air time. These companies are takeover targets for media content companies. Rubbish investments. Reminds me of all those years that every fund felt it had to carry that perennial favourite, SAPPI - because it was supposedly just a matter of time since we simply "couldn't do without paper!" Sure Bob!
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SimonPB
Valued Contributor
err how about Nigeria and Iran as two areas of growth .. you did see what their subscriber numbers did ?? and yes it is about data going forward .. still billable .. and as for mass media companies, unless you talking web 2.0 companies - they got no money ..
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striker
Super Contributor
Impressive subscriber numbers are meaningless if they dont translate into returns.The days of fat margins and growing subscribers are nearing an end.
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THRESHOLD
Super Contributor
SIMON. YOU REALLY NEED TO READ MY POST PROPERLY! YES - MASS MEDIA COMPANIES HAVE NO CASH - THAT IS PRECISELY THE POINT! AND as for growth - who cares - you can only charge what the market will stand. What makes you think that nobody else will move into Iran, Nigeria etc. etc. etc. Have you seen the competition's billing rates overseas. Reinvesting tens of billions over the years into growth still not able to generate a dividend. AND now we have SHRINKAGE in the figures - what GROWTH are you talking about? More and more subsribers and revenue for lower HEPS. Let's watch this space and see who's right.
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Not applicable
Got to say I side with Threshold on this one, although my caps lock is not stuck! As my old university professor used to say, what is the sum total of a lot of zero's. Nigeria growth is old news - but they no longer have their tax concession benefit, coupled with massive competition in the market (9 telco's and counting), currency risk and dwindling ARPU's to boot. I mean, sure you can grow your sub numbers - but since the new subs you are taking on, are below the breadline winners, your ROCE is going to take a hammering. Iran is a different story, and I have to admit that it is an attractive market. But given MTN's size now, how much real growth can you expect Iran to contribute to group earnings? Not to mention that they are in a state of semi permanent nuclear standoff with the US
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richardw
Super Contributor
Good netiquette generally has the communicator responsible for getting their message across, not the reader. Frankly, I had a hard time figuring out what your message is, and getting shouty isn't going to help.
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john_1
Super Contributor
I think that the days of abnormal profit are gone or going fast, don't confuse the expoitaion of the South African consumer with the competive enviroment else where. I think that they will always make money and have a degree of pricing power butI would think that the growth curve is likly to flatten rather than steapen.. so if you were in 10years ago you have been laughing but I am not conviced you will still be laughing in another 10 years... I
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SimonPB
Valued Contributor
growth curve is absoluteky flatening .. but still better then say PIK ??
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SimonPB
Valued Contributor
sorry I can't hear you .. can you hit those keys harder ??
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john_1
Super Contributor
Hmm.. not sure I agree.. I know for sure Pick N Pay will be paying a div in 10 years time and higher than today...cant say the same for MTN can you.
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Not applicable
especially since with MTN, you are investing in a company who are pinning a lot of hope on their investments in a country at a nuclear standoff with the west - and said country is forcing them to relinquish shareholding to local investors
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striker
Super Contributor
The equation is simple really - the share price supposedly always factored in growth - in subscribers yes,in dividend returns definitely not.The telecoms playing field has changed,becoming highly competitive/price sensitive.To yield investors an above inflation return of around 5-6%,if growing profits is becoming problematic,MTN's share price should be somewhere around R40,at current div.yields.The hype on this stock,is fading fast.
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SimonPB
Valued Contributor
I think that data becomes a mere commodity and as such once their network is in place all they offer is dividends .. they would tootallyu ex growth sellign data at small margins, but sellign trucks loads of it at low cost to them selves (beyond mataince) ..
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THRESHOLD
Super Contributor
See how well all of the SHOUTING worked.way over there. Simon heard me all he way over there. And so too did others, it seems.
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doomsdayza
Super Contributor
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Starsky
Frequent Contributor
big bump now!!!!!!!
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