I've been saying we need to cut dividend for years. I've posted it here before and got laughed at. But the fact remained through all that that we were (and are) not able to afford what we were paying out. Our levels of debt are the best indicators of that. This is the one management move I can get behind.
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Try selling that notion to the widows and orphans, they aint buying it. I hate to admit it, but this is the beginning of the end for at&t. Thanks Stephenson, Stankey, and BOD. The absolute worst leadership of any company in all of history.
Big beautiful debt to make AT&T great again.
The dividend policy since 1984 was approximately 4% and as the earnings improved and the stock price increased to $59 the dividend policy was set.
Ed decided we needed to get big so he started buying like a drunk sailor. Unfortunately he bought wrong, Randy & John continued with the carnage as the terrible purchases continued the debt built up and they ceased annual portial penny dividend increases. The 7% dividend is directly tied to maintaining the 4% dividend - which crept only to the extend that the stock price collapsed.
As soon as stock holders see the divi cut this price will drop to around $16/$20 per share.
T is a _urd.
VZ can afford a better per share divy ($2.51 vs. $2.08). So why can't T? The problem was not the dividend. It was the dummies who made stupid deals and loaded the company up with debt. None of that needed to happen. Cut all leadership compensation and claw back compensation from Stephenson and Stankey and anyone else who was involved with company strategy. Replace the entire board with some folks who have business sense and backbone to stand up to id--t CEOs.
They borrow to pay the dividends. Ratty cannot be denied his $1,000,000 quarterly dividend. The guy needs to be able to laugh all the way to the banks. Now he is off to be on the Board of Misdirectors for the new company. Yet another company for him to enrich himself and ruin.
If they cut the dividend, the widows and orphans will be hurt and the stock price will drop and the executive bonuses will fall.