This guy is convinced that AT&T dividend will continue to grow, which makes the stock a must buy. How? We can't afford the dividend that is paid out currently, how in the world would we be able to afford an increase? How much more debt are we expected to take on?
https://seekingalpha.com/article/4390225-t-your-dead-money
AT&T has about $20b in free cash flow. $6b is interest on the debt and $14b is dividend. Debt pay down comes from sale of assets.do the math. The math doesn’t work
@1ezf+180b5AJJ - good one lol
We easily afford the dividend and servicing the loans plus investing 20 billion this year into ATT growth. As we continue to pare debt/ refinance debt ( to almost zero interest) we are realigning HBO , building out the Fiber Network and executing on 5G rollout... we have reduced wasteful headcount. Now once the COVID is stabilized and the economy finds its footing ..watch out.
Currently about 4 of 10 households still have landlines (not 1 / 10 by previous poster) but yes, the number is slowly trending down year by year.
I buy it. Take a look at the top shareholders of AT&T, especially Blockrock and Vanguard. Those two top dogs want to see dividends, because they sell funds that have dividends, and they need stock in these funds. If AT&T's management falters, those two top dogs will field an alternative slate of directors to be voted on at the next meeting.
Aside from all the hoopla about Elliott, Elliott didn't hold a candle compared to Vanguard and Blockrock.
https://money.cnn.com/quote/shareholders/shareholders.html?symb=T&subView=institutional
AT&T's big problem is in jettisoning landline telephony, along with the mainframe computers that bill it and so forth. First it was going to be 2017, then the ballyhooed 2020. There's no money in a service that not even 1 out of 10 households have anymore.
Ponzi scheme that’s become glaringly clear with the pandemic.
The dividend is ALL that AT&T has to offer. We are in an industry where technology and competition is reducing the price that we can charge for almost every service. AT&T painted itself into the corner as a commodity service provider. There are no new revenue streams being organically created within our business. And we have demonstrated, again and again, that acquisition as a means of growing revenues is a dead end. What is left is the pathway for continuously reducing costs to free up cash to pay investors a sizeable dividend until such a point that the actual stock price has dropped low enough for AT&T to be acquired either in whole or parts.
The dividend is easily covered
It's clear that the only thing that matters to this organization is that dividend. Leadership is willing to fire, outsource, and destroy careers just to keep the dividend afloat. So, never say never.