I totally agree with you on TROW. That company, and its dividend, is not going anywhere. Total cash is something like ~$2.5 B and total debt is $380 M. TROW has multiple income streams and is well managed.
VZ ... oooo! I beg to differ. It's debt and cash levels are upside down compare to TROW. $180 B in total debt and $2.4 B in cash. Their debt level is higher than their market cap. When buying into VZ I feel like you are buying into their debt like a bond but without the benefits of a bondholder. I understand their revenue is contractual and probably pretty steady. They can count on the monthly bills of the subscribers being paid like clockwork. Still ... that kind of debt doesn't inspire confidence in me.
I totally agree with you on TROW. That company, and its dividend, is not going anywhere. Total cash is something like ~$2.5 B and total debt is $380 M. TROW has multiple income streams and is well managed.
VZ ... oooo! I beg to differ. It's debt and cash levels are upside down compare to TROW. $180 B in total debt and $2.4 B in cash. Their debt level is higher than their market cap. When buying into VZ I feel like you are buying into their debt like a bond but without the benefits of a bondholder. I understand their revenue is contractual and probably pretty steady. They can count on the monthly bills of the subscribers being paid like clockwork. Still ... that kind of debt doesn't inspire confidence in me.
I hear you! The main problem is that they are suffering from net outflows.
When you can find a great asset managers with attractive and sustainable inflows, it can be a very interesting thing!