Frontier Communications Corporation Announces a 5% Increase in its Dividend in 2015
December 11 2014 - 4:20PM
Business Wire
Frontier Communications Corporation (NASDAQ:FTR) announced today
that its Board of Directors has approved a 5% increase in the
planned quarterly cash dividend rate, commencing with the dividend
for the first quarter of 2015. The quarterly dividend will be
increased from $0.10 per share to 10.5¢ per share. On an annual
basis, the dividend will be increased from $0.40 to $0.42 per
share. Each future quarterly dividend must be declared by the
Company’s Board of Directors prior to payment.
“Today’s announcement reflects the Board’s confidence in
Frontier’s business and financial strength and our solid execution
performance in integrating the Connecticut acquisition,” said
Maggie Wilderotter, Chairman and Chief Executive Officer.
“Increasing the dividend rewards our shareholders, and we have a
sustainable payout ratio to support this new rate in 2015.”
The Board of Directors intends to declare the first quarter 2015
dividend in February 2015, at which time the Company will announce
the record and payment dates for this dividend. It is expected that
the first increased dividend will be paid in late March 2015.
About Frontier Communications
Frontier Communications Corporation (NASDAQ:FTR) offers
broadband, voice, video, wireless Internet data access, data
security solutions, bundled offerings, and specialized bundles for
residential customers, small businesses and home offices and
advanced communications for medium and large businesses in 28
states. Frontier’s approximately 17,000 employees are based
entirely in the United States. More information is available at
www.frontier.com.
Forward-Looking Statements
This document contains "forward-looking statements" – that is,
statements related to future, not past, events. In this context,
forward-looking statements often address our expected future
business and financial performance and financial condition, and
often contain words such as "expect," "anticipate," "intend,"
"plan," "believe," "seek," "see," "will," "would," or "target."
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For us, particular
uncertainties that could cause our actual results to be materially
different than those expressed in our forward-looking statements
include: risks related to the recently-concluded AT&T
transaction, including the ability to successfully integrate the
Connecticut operations, diversion of management’s attention,
effects of increased expenses or unanticipated liabilities, ability
to realize anticipated cost savings, sufficiency of the assets
acquired from AT&T, maintenance of customer and supplier
relationships, and our ability to meet debt and debt service
obligations, which have increased as a result of the AT&T
transaction; competition from cable, wireless and other wireline
carriers and the risk that we will not respond on a timely or
profitable basis; our ability to successfully adjust to changes in
the communications industry, including the effects of technological
changes and competition on our capital expenditures, products and
service offerings; reductions in the number of our voice customers
that we cannot offset with increases in broadband subscribers and
sales of other products and services; the impact of regulation and
regulatory, investigative and legal proceedings and legal
compliance risks; continued reductions in switched access revenues
as a result of regulation, competition or technology substitutions;
the effects of changes in the availability of federal and state
universal service funding or other subsidies to us and our
competitors; our ability to effectively manage service quality in
our territories and meet mandated service quality metrics; our
ability to successfully introduce new product offerings; the
effects of changes in accounting policies or practices; our ability
to effectively manage our operations, operating expenses, capital
expenditures, debt service requirements and cash paid for income
taxes and liquidity, which may affect payment of dividends on our
common shares; the effects of changes in both general and local
economic conditions on the markets that we serve; the effects of
increased medical expenses and pension and postemployment expenses;
the effects of changes in income tax rates, tax laws, regulations
or rulings, or federal or state tax assessments; our ability to
successfully renegotiate union contracts; changes in pension plan
assumptions and/or the value of our pension plan assets, which
could require us to make increased contributions to the pension
plan in 2015 and beyond; adverse changes in the credit markets or
in the ratings given to our debt securities by nationally
accredited ratings organizations; the effects of state regulatory
cash management practices that could limit our ability to transfer
cash among our subsidiaries or dividend funds up to the parent
company; the effects of severe weather events or other natural or
man-made disasters, which may increase our operating expenses or
adversely impact customer revenue; the impact of potential
information technology or data security breaches; and the other
factors that are described in our filings with the U.S. Securities
and Exchange Commission, including our reports on Forms 10-K and
10-Q. These risks and uncertainties may cause our actual future
results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update or revise
these forward-looking statements.
Frontier CommunicationsINVESTOR:Luke Szymczak,
203-614-5044Vice President, Investor
Relationsluke.szymczak@ftr.comorMEDIA:Steve Crosby,
916-206-8198SVP, Corp. Comm.steven.crosby@ftr.com
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