Reader Request: Telecom Sao Paulo (NYSE:TSP)
24 June 2007I received a request from Dividends Matter reader Darsh to have a look at Telecom Sao Paulo which trades on the NYSE under the symbol TSP. This is in fact a foreign company trading with an American Depository Receipt. Darsh was excited about this one because of a 9% dividend yield.
When I began to analyze this stock, the very first thing I noticed was that my data provider had lots of missing information. I went to my other sources such as ADVFN Financials and Yahoo Finance. And these sites were all reporting different numbers from each other as well as my original data!
For example, ADVFN Financials and Yahoo Finance both had the dividend yield listed at 2.3%. My own data source had a dividend yield of 7.5%. And Darsh was under the impression that there was a 9% dividend yield.
Other key numbers such as earnings per share and book value were inconsistent as well. And I had some extremely strange dividend payout ratios where 5 of the 8 years that I had some data for were over 100% - and one was as high as 170%!
Bottom line is that I do not feel that I have sufficient and trusted information to perform a valid analysis on this particular company.
And having said that, I would not include this in a portfolio of superior dividend yielding stocks. Stability and consistency are paramount when constructing a portfolio of this nature.
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