The following video is part of our "Motley Fool Conversations" series, in which analyst Paul Chi and senior analyst Matt Argersinger discuss topics across the investing world.
In today's edition, Matt and Paul discuss Frontier Communications' recent dividend cut. Companies usually aren't willing to cut their dividends out of fear that investors will flee the stock. This time around, however, it was a good move. Now that Frontier pays a more reasonable level of its free cash flow to its investors, people no longer have to worry about a looming dividend cut.
Matt Argersinger has no positions in the stocks mentioned above. Paul Chi has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.