https://www.fool.com/investing/2020/11/20/experts-debate-is-att-a-high-yield-bargain-or-a-di/
3 replies (most recent on top)
"Ratty and Stinky and the Board of MisDirectors"
Sounds like some witty nicknames my grandfather would find hilarious.
Is this the same 65+ year old retiree posting this c-ap on every post on this board?
Don’t forget anyone can write for these articles. T still generate massive cash flows that allows after dividends and expenses plus plowing in 20 billions this year into growth ( massive fiber build unfolding) it still posts billions in profits. Elliot left cause there are better prospect that they can churn quicker then this behemoth. Elliot made a big mistake taking on a pseudo utility.
Ratty and Stinky and the Board of MisDirectors transformed T into a dividend trap where T borrows more $ to cover the dividend.
But Ratty never wanted to cut the dividend because that would have reduced his $1M a quarter dividend check!
Then you got to wach more employees because of the increased debt load.
Then the price of T stock goes down, which increases the dividend rate as a precentage of stock price.
Which attracts more investors for the higher divident rate. So they get a 7% dividend but lose 21% in the stock's value.
Classic Ponzj scheme!
For sure it turned T into a dumpster fire!