Never for the life of me will I understand this stubborn refusal to cut the dividend we realistically can't afford. Will it really be the end of the world for the company if the dividend is reduced slightly?
https://www.cnbc.com/2021/03/12/att-ceo-john-stankey-on-quarterly-dividend-hbo-max-ad-supported-option.html
The dividend is fine. We don't need dumb ideas like cutting dividend. What we need is to get workers to be more productive.
The OP obviously does not live in the Finance department. AT&T has never cut the dividend in 100 yrs. Raised it most years. This is a cash machine, that generate enough cash to make the dividend every qtr.
Without the dividend ATT's stock price would be a lot lower than it is today. If not for the dividend, what reason would there be for anyone to buy it?
I retired recently from T, and the only reason I hold the stock is the sizable cash flow it provides me. I'm sure I'm not the only one.
You don't understand? It's quite simple. AT&T is a democracy. Each share gets a vote. If AT&T doesn't maintain a dividend, those shares will vote for an alternative slate of directors to get AT&T back on track. Blackrock and Vanguard are large investors that use AT&T stock in a dividend fund. They would likely field the slate of alternative directors.
AT&T is not a growth company, given the declining copper businesses. If they don't pay a dividend, they're a penny stock.
When the dividend payment is around 50% of FCF I don’t understand why you think T can’t afford to pay the dividend. Payments to shareholders in the form of capital appreciation and dividends is the reason the company exists. Retention of employees is not and shouldn’t be uppermost in the mind of the C suite. Debt repayment and reduction is to be expected but T has borrowed at low interest rates for the most part and seems to be able to retire debt without too much impact on its ability to invest in growth.
You don't understand why people who get significant compensation from stock aren't motivated to keep the share price high no matter what?
The dividend is one of the few, if not only, ways that wall street manages the execs. The day they cut it, Sir Stinky will be out on the street.
Do you get it now?
Cut the dividend? That is the only reason the majority own the stock. Cut the dividend after the promises made and stock goes to sub $20 per share quickly and the executives can't have that. They only know how to tread water and drown, swimming is not in their playbook. Legere did Synchronized Swimming band Water Polo while Randall and Johnny sat in the kiddie pool. Hollywood and established players are going to carve Time Warner up like a butcher to a steer.