Why AT&T Should Cut Its Dividend


  • Convergence is the priority of the moment for all telecom service providers.
  • Fiber and fixed wireless broadband are key growth areas, but AT&T is slowing down its fiber build rate.
  • AT&T could dramatically boost its growth rate and improve its competitive position by increasing its fiber build speed.
  • While a dividend cut is unlikely to happen now, missing the boat could make it more likely in the future.

Cyclists racing, side view

AT&T might be not agile enough to win the race

Ryan McVay/DigitalVision via Getty Images

Convergence is reshaping the telecom space

Currently, there is a clear trend in the U.S. telecom industry: You can either gain customers by offering a simple, efficient and

Verizon Q4/22 results

Verizon Q4/22 results

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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: I am long DTEGF which owns 49% of TMUS and long LBRDK which owns 26% of CHTR.

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