Hundreds turned out Tuesday for SureWest Communications' annual shareholder meeting after a controversial decision to ax dividends led to a furor among some shareholders.

Last month, the Roseville-based telecom announced it would end its practice of paying dividends effective June 16.

At Tuesday’s meeting, investors presented unanswered questions and concerns regarding the halted payments.

SureWest’s dividends were a longstanding tradition for shareholders, received quarterly since 1953, and in recent years were set at 25 cents per share.

Steven Oldham, president and CEO of SureWest, told shareholders one of the primary reasons for the halt was a more substantial monetary return in the long run for shareholders with the stop of the quarterly dividends.

“The cash is better directed in growing our network,” he said at the meeting. “The dividend policy had to change.”

SureWest’s board of directors voted 6-1 last month in favor of the dividend drop, with member Kirk Doyle the only member to vote against the change.

Oldham and other board members answered written questions shareholders had during the meeting, mostly regarding investors’ loss of dividends and other routes that could have been taken.

One person asked why shareholders were not able to vote on the dividend decision.

Oldham said the board of directors had all of the facts and information needed to make the decision.

Every quarter, the board reviews the financial position of the company, he added. And the last quarter review resulted in the dividend debate.

“Is the cash dividend likely to provide maximum value to shareholders?” Oldham rhetorically asked. The answer the board found, was no.

One of SureWest’s goals, Oldham said, is to grow shareholder value by growing revenues, and research found that eliminating dividends will ultimately help the company reach that goal.

But for some, the promise of long-term rewards don’t make up for the short-term monetary loss.

Silvia Slade, a shareholder, said she receives about $17,000 a year in dividends from her more than 13,000 shares of SureWest stock.

“I put a lot of my retirement into this company,” she said.

Slade said she thought the company and its dividends were a bit more secure than they actually are.

Applause erupted in the packed SureWest room when shareholders brought up their concerns. No further action was taken regarding dividends, but one shareholder, Candice Stephen-son, stood up and gave some encouragement to investors upset by the cuts.

“We’re not done fighting yet,” she said.