UNIT - Uniti Dividend Is Likely To Be Suspended

Introduction

Uniti's (NYSE:UNIT) share price has fallen by over 50% in the last ten days following an adverse legal ruling that might trigger or accelerate a default of its largest customer, Windstream (NYSE:WIN). There are speculations about the fairness of the judicial decision, the safety of master lease agreement between Uniti and Windstream and the risk or the quantum of a dividend cut at UNIT.

In addition to the legal uncertainty, a key issue is the falling revenue base of the sector whether it is at CenturyLink (CTL), Frontier (FTR) or