NEW YORK Feb 19 Rural telephone operator
Windstream Corp said on Tuesday that it would stick with
its $1 annual dividend, soothing some investors fears, after
another telephone company, CenturyLink Inc, cut its
dividend by 25 percent last week.
"Windstream continues to produce substantial free cash flow
that enables us to invest in our business and reduce our debt
while continuing to pay our $1 annual dividend," Chief Executive
Jeff Gardner said in a statement.
The company also reported a fourth-quarter profit of $10
million or 2 cents per share compared with a loss of $35 million
or 7 cents per share in the year-earlier quarter on revenue that
rose to $1.54 billion from $1.21 billion.
Windstream shares were down 10 cents $8.83 in morning trade
on Nasdaq. The stock has fallen more than 9 percent since
CenturyLink announced its dividend reduction on Feb. 13.