AT&T Dividend (ticker $T)

  1. The dividend cut coincides with the spin off, so T's price should adjust lower after the spin off, thereby increasing the yield even more. Holders on the spin off can sell WBD and buy T back and effectively get a 5 to 6% divvy at current price.

  2. Im interested in the spinoff tbh. I like the story that content is king and this spinoff will have enough to compete with the big dogs.

  3. I need to do some research into the spin off company sometime. On paper I think it's definitely intriguing since it'll get stuff like HBO Max and Warner Media, that's a lot of content right there.

  4. Past management has blown it, present management will blow it, and future management will continue to blow it!

  5. This is so damn true. Speak it up!!! People get “lost” with the dividend. But if one simply invested in VTI over the past 10 years, they would have made vastly more money. Like gobs and gobs more.

  6. Unpopular opinion in this sub I know, but even T has an entry point that makes sense. If you look at their free cash flow and even account for their massive debt - $25 a share is a perfectly good entry / add price. That said, completely understandable that folks are turned off by past performance and management blunders. Will the price be lower after spin-off? Yes. But that’s not a value loss, it’s just value separation.

  7. You should be super-excited. Who gives a shit what this sub thinks? They sucked off qyld for six months straight. Tell the folks where you are today, gang.

  8. Jep you have a dividend paying stock with high fcf, and a growth stock at the same time from the spin off. Alot of people dont know the debt payment alone will save them almost 2b a year on interest, so while decreasing debt they have a higher net profit eventually

  9. Shitty company with enormous debt and poor management. Look beyond the dividend (which was just cut despite years of promises it never would it) and you’ll find a business you shouldn’t commit any money to. There are so many better options for dividends out there.

  10. The dividend might be good but the stock is not. Here is the historical return on T before dividends. 1Y -13.52% 5Y -31.77% 10Y -14.44%. Notice a trend?

  11. It’s one of the few undervalued stocks right now in this market, sure debt is a monster, management sucks, but AT&T isn’t going anywhere.

  12. there is so little upside here. If you picked an oil major like XOM, you have a solid dividend for many years and a 25% potential stock increase.

  13. This stock is horrible, I am down 32% and I dont see a recovery soon… regardless of the dividends, its horrible! I hate it and my advisor purchased for me…

  14. sell off all of them when they said that they are gonna cut the dividend. I am not regretting it because since then, the stock price just going down.

  15. and how did that work out the last 5 years? Even if it paid an 8% dividend, it’s going to underperform, it’s T.

  16. You're essentially buying a company that has been managed absolutely terrible in the past decade, the stock price has gone nowhere and they have way too much debt. Unless they swap out the whole management, I'd not buy, too much risk of them doing something really stupid again and burn a lot of money.

  17. Yes, it’s still among the top dividend payers plus you get a high growth stock as a bonus. Not sure what is driving people to irrationality here. It’s a hold, if not a buy at these levels.

  18. If you think T is a solid company on its own network and service I do not see why listen to anyone else. Personally I was a HBO max (warner media) bull for T. Since the reason why I bought T changed I will be shifting my telecomn section of my portfolio to VZ, not because of what people think of T as an investment.

  19. A recent comment was made on CNBC's Fast Money. When asked if there was anything good about AT&T, his response was that it was so bad it HAD to be good. The SP has dropped about 5$ over the past year but it is still paying out the same dividend until the spin-off is completed.

  20. I think a lot of people are sleeping on this one. 5 years ago I would have said that a new CEO needed to come in and get the company back to being a telecom giant without destroying value. That’s what’s happening. Someone paid money for a part of Directv, and we’re going to own 71% of Discovery. This places horribly managed AT&T media assets into the hands of one of the best capital allocators in the media industry. We’re going to have buybacks writhing 12 months once the leverage ratio comes down. AT&T yields 11.2% FCF at the moment. Discovery seems to make good capital decisions. I’ve been selling things and loading up on this diamond in the rough.

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