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Analyst expects Qwest to issue dividend
By Andy Vuong, Staff Writer
Denver Post
Wednesday, September 5, 2007

A dividend might be coming soon for Qwest shareholders, according to a Wall Street analyst.

JP Morgan analyst Jonathan Chaplin wrote in a research note today that he expects Qwest to announce a "large, recurring dividend" by October.

The Denver-based telecommunications company's last dividend payout was on June 29, 2001.

Talks of a dividend swirled about a year ago as Qwest began its recent string of consecutive quarterly profits.  But the company announced a $2 billion share buyback last October instead of issuing a dividend.

Qwest said in August that it has repurchased about $1 billion in shares.

New Qwest CEO Ed Mueller didn't commit to a dividend during his initial round of interviews with analysts and reporters last month.

Chaplin also expects Qwest to beat Wall Street estimates on revenue and earnings before interest, taxes, depreciation and amortization for the third quarter.

Qwest stock dropped 8 cents to $8.87 during early trading today.

Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com. Visit his blog at www.madsiz.com.

http://www.denverpost.com/business/ci_6798182