Nokia may not pay out dividends for the first time in more than 20 years

Nokia may not pay out dividends for the first time in more than 20 years
Nokia may be forced to cancel its dividend payout for the first time since 1989 as the Finnish company struggles with its transition to Windows Phone as its main smartphone platform.

Nokia has burnt through 2.34 billion euro (around $3.01 billion) in the last two quarters alone and analysts expect the company to continue bleeding cash in the following six quarters at minimum. But with no dividend to pay Nokia might face a negative reaction from yield-oriented investors.

Still, that’s a risk the phone maker has to take, and many analysts are surprised that Nokia hasn’t cut dividend payout until now. Currently, Nokia stock is rated “junk” by the three major credit rating agencies.

Nokia denied to comment on reports about the possibility of it slashing dividends, and usually the Finns announce such news around January in its quarterly results announcement.

The company’s smartphone shared has slipped to merely 6.6%, down from more than 50% before the launch of the iPhone and Android devices.

source: Bloomberg

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36 Comments

1. StephenGal0p

Posts: 21; Member since: Sep 26, 2012

.. but I still love you, Nokia :) Have 12,000 shares right now with an average buying price of 2.3 USD

5. denied911

Posts: 361; Member since: May 31, 2012

sell for more than 2.3 and on the end of this q financial results will be very bad so stock go very low and then buy again this 12,000 for less money ;)

7. StephenGal0p

Posts: 21; Member since: Sep 26, 2012

still deciding, I am keeping a lookout on Lumia 920/820 sales/respond first.. Not going to sell at the price of 2.6 right now Q4 result will be announced around Jan - Feb, so there's still time to sell when needed :)

22. terter

Posts: 9; Member since: Sep 25, 2012

Vote to fire Elop. Nokia should start to make android phones in addition to Windows and Simbian. Then one day your shears may cost a small fortune.

23. epdm2be

Posts: 819; Member since: Apr 20, 2012

Yes Fire Elop But drop Windows! PRONTO! Drop Compal DON'T EVER let these morons make ANY Nokia device EVER AGAIN! Open original Nokia factories across Europe. Restart Symbian... AND just keep the platform alive. Becuase no MATTER wat everybody ELSE says. It is the MOST stable and most feature full smartphone OS around (as is proven AGAIN by the 808 Pureview). Re-start Harmattan. In fact commence with the original plan. In future replace S60/Symbian with Harmattan and S40 by Symbian. And THEN , but only THEN you WILL gain credibility again! In fact to detoriate WP support even further but to support Nokia Symbian devices I purchased 2x Nokia 701 devices more. I already have one 701 and N8 in my posession. DROP WIndows Phone NOW! Fire Elop NOW! And revitalise your company foillowing the original plan! PRONTO!

30. StephenElop

Posts: 14; Member since: Sep 27, 2012

You got to be kidding right? The cost of manufacturing in Europe is high, it'll cause Nokia to sink back even if WP is successful.

31. Andykok

Posts: 2; Member since: Sep 28, 2012

yes,stop making phones in China.Restart meego and symbian.but meamo as a tablet platform.Fire elop and we will have peace.

2. sarb009

Posts: 322; Member since: Jun 15, 2011

this is the price to pay to go for stupid tiles instead of android. I even prefer symbian over windows mobile. tiles are like jail u cant even set a simple wallpaper in 21st century WHAT ? Huh

4. drahmad

Posts: 480; Member since: Aug 20, 2011

u dont even know the name of the platfrom they are using. its windows phone poppy. the reason is not that, the real reason of nokia's decent is their late reply to iphone.

6. denied911

Posts: 361; Member since: May 31, 2012

win mobile is better than WP so it makes totaly sense comparing it to symbian,

11. MISTER.H

Posts: 167; Member since: Aug 03, 2012

You'r back after long time Drahmad.

14. MISTER.H

Posts: 167; Member since: Aug 03, 2012

i say and believe Nokia+Windows is a epic fail.

8. StephenGal0p

Posts: 21; Member since: Sep 26, 2012

fail fail, pathetic fanboy

13. MISTER.H

Posts: 167; Member since: Aug 03, 2012

Also it still has so many restrictions, Eflop killing his own OS and relying on Windows " What a joke" Trus Symbian is just like Android, why on Earth would Symbian users migrate to Windows prison OS... Eflop a ex Microsoft employe has taken down Nokia down the drain. He and the board members needs to be Fired right now.

24. epdm2be

Posts: 819; Member since: Apr 20, 2012

It's NOT Windows Mobile! It's Windows PHONE! Windows Mobile CAN fully multitask! WIndows Mobile HAS full bluetooth transfers! (Some) Windows Mobile CAN record phonecalls! This is exactly what Microsoft is counting on. The confusion between Windows Mobile and Windows Phone!

32. Andykok

Posts: 2; Member since: Sep 28, 2012

its worse than ios

3. AliNSiddiqui

Posts: 382; Member since: Sep 19, 2012

Oh my GOD From over 50% to 6.6%!? You want to know how to fix this Nokia? Ditch Windows Phone... go to Android... there is a HUGE market for Android, and imagine a Nokia Nexus with hardware of the Lumia? That phone will be better than anything... it will sell like hotcakes... Windows Phone has such a low market share... it's a great OS.. but a very poor way of getting back in the smartphone game...

9. StephenGal0p

Posts: 21; Member since: Sep 26, 2012

Sorry. its slow and laggy

10. PhansMuneeb

Posts: 371; Member since: Jan 28, 2012

Nokia is dying slowly.. :'( It's really hurts bcos i have seen poor quality of samsung and they suck in low-midrange phones...

15. MISTER.H

Posts: 167; Member since: Aug 03, 2012

True they should'ev had 3 options to go with; Android, Windows, Meego and see which OS the customers like!

20. Doakie

Posts: 2478; Member since: May 06, 2009

That sounds like a genius strategy for a hardware manufacturer. Take the Lumia 920, just swap out the capacitive buttons for one's that match each respective OS and sell a Windows Phone 8 version, an Android, and a Meego version. Concentrate on one excellent flagship hardware set and just make each OS work with that hardware. One key to success in the US market though is that these companies need to stop signing exclusivity agreements. The fact that I couldn't buy a One X on T-Mobile earlier this year is the reason I'm holding a GS3 right now. These companies are faltering because people can't buy their product unless they happen to be on the carrier that their exclusivity agreement is with. Nokia needs to break their flagship away from AT&T or they'll never get a foothold in the US market.

26. epdm2be

Posts: 819; Member since: Apr 20, 2012

"One key to success in the US market though" WHo the hell cares about a market of only 3 customers! Nokia WILL NEVER get the US telcos on their hand as they favor US based products. And becuase nobody in the US buys unsubsidized phones... Not to mention the declining income of generic citizens and hence declining market. Stop concentrating on the US. It's a minefield of patent-leglislation, telco subsidizing and corporate greed. Customers are NOT free at all.

25. epdm2be

Posts: 819; Member since: Apr 20, 2012

PLEASE STOP about Nokia accepting ANdroid! Android is crap! If Nokia makes Android devices then they would have to pay Microsoft too just as Samsung and HTC does now! Nokia has it's OWN superior Linux based OS. It's called Harmattan and is FAR BETTER then Android! So stop polluting these forums by saying that Nokia should make android devices. They should NOT! They'd sink in the sea of animosity together with LG, Sony and HTC as ONLY Samsung is making money from Android. Nokia should remain unique! nWith their own solutions. THAT'S their legacy. Nokia = Unique!

29. StephenElop

Posts: 14; Member since: Sep 27, 2012

Agree, Android is crap

12. PhenomFaz

Posts: 1236; Member since: Sep 26, 2012

trully dark days for nokia. do whatever but make sure your shareholders get their due or you're done! lets hope wp8 does wonders for them...it'd be a shame if this company were to follow RIM in being wiped out

16. MISTER.H

Posts: 167; Member since: Aug 03, 2012

Nokia will never go down! Eflop and board-members needs to get kicked out know...

17. StephenElop

Posts: 14; Member since: Sep 27, 2012

I will kick you out first!

18. MISTER.H

Posts: 167; Member since: Aug 03, 2012

it's you i believe; Stephengalop. you'r back.

27. epdm2be

Posts: 819; Member since: Apr 20, 2012

Come and say that to my face! I dare you!

19. LumiaLover

Posts: 237; Member since: Sep 27, 2012

I think the WP8 will be a great OS for Nokia. The phones are beautifully designed in funky colours and the WP8 software is classy and stable. Why bother trying to compete with Samsung, Sony Ericsson, LG, Motorola & HTC in the Android arena. It is overcrowded and it could be argued that Samsung are generating a loyal customer base in the same way as Apple do. Lumia 920 is unique, WP8 is unique and that's what's required in a crowded market.

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