Frontier Comm. CEO Defends Dividend
Cramer last month threw Frontier Communications in the “Sell Block,” citing the safety of its dividend. Could a company that just took on a massive acquisition, tripling the size of Frontier, really afford the payout? Especially when you consider that said company cut its dividend 25 percent on the day the deal closed? Cramer doubted it.
Frontier CEO Maggie Wilderotter took issue with his claim, though. And she appeared on “Mad Money” on Friday to state her case. She also wanted to explain how that acquisition, buying 4.8 million access lines across 14 states from Verizon, would push her stock higher. The deck seemed stack against her, though, considering that the last company to make a similar purchase from VZ, Fairpoint Communications, eventually filed for bankruptcy.
So who’s right, Cramer or the chief exec? Watch the video to find out.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org