Dish Network (DISH) Special Dividend Smaller Than Expected, But There was a Reason
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Price: $39.32 -1.53%
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
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Dish Network (NASDAQ: DISH) $1/share special dividend announced this morning has a negative aspect and a positive one, according to analysts at Wells Fargo.
On the negative side, the special dividend was lower than many expected. In December of 2011 the company paid a $2/share special dividend. Expectations among investors were even loftier, with some see thinking $3/share and others going so far as to say $5/share. Wells Fargo was thinking $2/share. "As a result, today's $1/share may seem disappointing -but we think the explanation lies in the fact that the final AWS-4 NPRM has not been approved or released by the FCC."
The analyst continued, "This NPRM clearly has implications for what Mr. Ergen can and cannot do with DISH's spectrum assets, and therefore this uncertainty likely weighed on Mr. Ergen's decision when it came to the special dividend. Our view -- had the NPRM been approved, the dividend would have been higher."
On the positive side, the special dividend was earlier than expected, the firm notes.
Wells Fargo continues to think there is substantial upside to DISH stock and reiterated their Outperform.
For an analyst ratings summary and ratings history on Dish Network click here. For more ratings news on Dish Network click here.
Shares of Dish Network closed at $37.04 yesterday, with a 52 week range of $24.36-$37.22.
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On the negative side, the special dividend was lower than many expected. In December of 2011 the company paid a $2/share special dividend. Expectations among investors were even loftier, with some see thinking $3/share and others going so far as to say $5/share. Wells Fargo was thinking $2/share. "As a result, today's $1/share may seem disappointing -but we think the explanation lies in the fact that the final AWS-4 NPRM has not been approved or released by the FCC."
The analyst continued, "This NPRM clearly has implications for what Mr. Ergen can and cannot do with DISH's spectrum assets, and therefore this uncertainty likely weighed on Mr. Ergen's decision when it came to the special dividend. Our view -- had the NPRM been approved, the dividend would have been higher."
On the positive side, the special dividend was earlier than expected, the firm notes.
Wells Fargo continues to think there is substantial upside to DISH stock and reiterated their Outperform.
For an analyst ratings summary and ratings history on Dish Network click here. For more ratings news on Dish Network click here.
Shares of Dish Network closed at $37.04 yesterday, with a 52 week range of $24.36-$37.22.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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Analyst Comments, Dividends, Special DividendsRelated Entities
Dividend, Wells Fargo
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