![]() ![]() ![]() In 2021, Lumen generated $3.74 billion of adjusted free cash flow. Hence, Lumen has a steadfast chance to join the 5G revolution, which will open new opportunities for the company and significantly increase its profits. Having in mind the perpetual growth of cloud computing services, as well as the hype for remote working trends, many tech organizations are earnestly aiming towards deploying 5G solutions. Lumen Technologies has an extensive edge computing platform designed to deliver near-zero latency for next-generation apps. That’s a five-times increase over its traditional deployment rate.Īccording to Storey, the company is now positioned as an “all-digital fiber brand.” Why did this make me reconsider selling? It’s pretty straightforward. In the statement, he said the tech corporation plans to increase its fiber deployments from 2.5 million locations to 12 million. While observing the events after the company announced its results, I stumbled upon a statement from Jeff Storey, President and CEO of Lumen Technologies. Nevertheless, the solid dividend yield was not the only thing that made me hold on to LUMN and multiply my investment. In the LUMN case, for each $10 stock, you would receive $1, as the dividend yield is a little over 10%. See, it’s not that complicated, it’s just basic math. For instance, if you buy one $100 stock that gets a dividend payment of $10, its yield would be 10%. The dividend yield is the financial ratio between the dividend a company pays and the price per share. Oops! From all the excitement I’m telling you this story with, I forgot to explain what dividend yield stands for. For a long-term investor like me, this means a lot. Credits: Nasdaq Why is that important?īecause a corporation that pays dividends is widely-considered to maintain respectable financial health. Despite the continuous downfall, Lumen Technologies kept its dividend yield above 8%. Now these $10 seem a little off-putting, I cannot deny it.īut I do know one thing. I do remember the time when the price was swaying around $40. After all, it is no secret that since 2015, shares have fallen 75%. Like many other shareholders, I have had my moments of disappointment throughout the last several years. Why did I choose to double my investment in Lumen Technologies after the crash?įirst, let me explain my relationship with this particular company. But once I let go of my impulsive emotions, I realized I should do exactly the opposite. I admit, at first, I was probably as scared as those who chose the selling path. With a dividend yield of 10.14%, the drawbacks I found in the fourth-quarter 2021 report, as well as the fairly pessimistic observations about the 2022 fiscal year, didn’t seem so alarming. Although the company’s stock had gone through a serious decline, the dividend yield continued to hold its strong position. Be greedy when others are fearful.”Īnd then it hit me. That’s when I remembered one of my favorite quotes from one of the most successful investors of all time, Warren Buffett: However, instead of following the crowd and turning my back on Lumen Technologies, I gave myself time to observe the events. It was a real-life stampede of petrified investors who gave in to their emotions and abandoned the LUMN ship. ![]() In fact, that’s exactly what the market did. Anyone would go into panic mode seeing their money slowly disappear. From $12,82 on February 9, just a week later, it barely reaches $10. Indeed, the price per share had dropped heavily. I even considered selling my LUMN stock.īut then I realized something that instantly changed my anxious mind. To be honest, I freaked out for a moment. When I found out about their concerning Q4/FY2021 results, followed by their FY2022 guidance, I was worried I might lose a lot of money. I have had LUMN in my personal portfolio for quite some time. Normally, I wouldn’t bother you with my own stock market adventures, but this time it is different. Today, I decided to share with you one of the challenging investment decisions I personally made this year. Its quarterly results for the fiscal year 2021, together with its shocking prediction for 2022, caught everyone by surprise. Lumen Technologies, Inc.(LUMN) recently rocked the stock market boat.
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