CHTR - Buyback Gem Or Debt Disaster? Charter Communication's Thin Line

2024-06-25 02:35:27 ET

Summary

• Charter Communications has been a successful investment, up 742% since 2009, beating the S&P 500 by a substantial margin.
• Recent troubles have caused a 60% sell-off, as CHTR is pressured by elevated rates and potential demand risks.
• Analysts expect a path to accelerate EPS growth, and the company is working on reducing debt to get back on track.
• If you believe in a path to lower rates, CHTR could be a great stock for you. However, it comes with elevated risks.

Introduction

Most of my articles are about dividend (growth) opportunities. After all, that's where we find opportunities that come with above-average returns and below-average risks, using the findings in the chart below.

In other words, these are low-risk, high-reward opportunities, which is somewhat contrary to the belief that we need to take huge risks to generate great returns....

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