AT&T: Dividend Cut Is Unlikely – This Is Why


  • T recently highlighted its position “among the best dividend-yielding stocks in the United States and in the Fortune 500.”
  • Combined with its potential FY2023 FCF generation of $16B or more, it appears that the company may deliver on its existing commitments with no issues.
  • Even so, investors need to closely monitor T’s forward execution and macro risks, due to the potential impact to its top and bottom lines.
  • Particularly, its elevated long-term debts of $129.19B continue to weigh on its forward execution, attributed to the $6.1B of annual interest expenses.

Business man with fingers crossed


T’s Dividend Investment Strategy Still Looks Safe

After Intel (INTC) cut its dividends after 8 years of continuous growth, we think it is a good time for us to examine if AT&T’s (NYSE:T) dividend is safe, due

T 1Y EV/Revenue and P/E Valuations

S&P Capital IQ

T 1Y Stock Price

Trading View

Disclosure: I/we have a beneficial long position in the shares of TMUS, AVGO, INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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