titanic and watch investors flee.
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There's a good blurb on Investors.com this am arguing just that point:
AT&T Stock: New CEO Stankey Should Cut Dividend, Says Analyst
https://www.investors.com/news/technology/att-stock-should-stankey-cut-dividend/
So glad I reallocated everything away from T stock a few years ago, it is such a complete DOG. Dividend, Schmividend.
Hey, let’s just go get another 5.5 billion dollar loan to pay dividends. What’s a little more debt says the shopper with a new credit card!
T will be @ $25 before 2020 YE if they keep the dividend. Mobility service quality and coverage space is owned by Verizon and T Mobile is gaining fast. New Millennial subs don't raise ARPU. They want free apps and solid coverage at the lowest possible price. The 5G speed train offers nothing other than bragging rights. Sure it will enable some cool IoT tech but at an average of $10 ARPU per SIM card. And the new focus on fiber everything is a farce. Existing fiber network is way underutilized mostly due to the Cable operators in major markets providing similar SLAs at half the price. Building new fiber to compete out of footprint will cost Billions. This plane is out of fuel and way far from the airport. There is no Miracle on the Hudson at the end of this flight. Even RS grabbed his parachute. LOL.
Cutting the dividend would be an act of desperation. Failing to increase the dividend would raise eyebrows among investors and savvy individual stockholders.
The only answer is to increase the dividend when the market and history says it's time to do so. Failure will further depress the stock price. Increasing the dividend puts pressure on profit and decreases the cash to pay off debt.
Way to go C-suits. You've driven to ship into the rocks. Just lay off a few thousand more employees. Yeah, that's the answer.
Cutting the dividend would destroy the company. The stock price would plummet which in turn would ruin many 401k's and retirement funds through the nation. As a former employee I still invest in AT&T for their dividend. I don't agree with everything AT&T does, but I do wish the company well.
But these wireless division just won awards and is a cash cow how could they
The dividend is the only keeping the company afloat!