The yearly dividend of AT&T stock is 8.42% now. It seems it’s a good source to make passive income. Any risks?
They are down 32% over the past 5 years.
Isn’t the fall in underlying stock price (down 15% past year during the biggest bull run) offsetting your dividend? What good is that dividend ?
Uh yea they’re going to cut it in half
Their high dividends aren’t covered well by their earnings. Also there was news that they could potentially halve their dividend by mid 2022. Specifically in their proposed deal with Discovery they included the statement, “After close and subject to AT&T Board approval, AT&T expects an annual dividend payout ratio of 40% to 43% on anticipated free cash flow of $20 billion plus.” So once the deal goes through you could see around a 4-5% yield vs what it is now.
They won’t touch their dividend as they are kinda very adamant on having the 30-40 years of paying out that high of %. People here don’t understand how telco works. Telco and most of the utility companies are in massive amounts of debt for their infrastructure. But they don’t care cause as long as you need cell coverage telco is needed. So their lenders are more than happy to lend money to them cause it is safe. Telco also will take that money and will go under more debt happily cause they know no one will cash the money owed and they just issue more bonds and kick the can down the road. Look at Verizon you will see the same thing.
They haven’t innovated anything since they were called bell labs. It’s a zombie companyZ
Buying a stock for dividend yield never ends well
Trash company.
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I’ve been considering this for awhile now. Major merger coming next year between Timewarner/hbo/discovery that will likely be positive. Don’t know much about AT&T’s fiber and cell businesses. I also know their leadership has been a nightmare but maybe the merger will help?
They have already sold hbo max to Discovery ! They are focusing only on telecom and selling everything else !