Hearing some chatter that leadership is evaluating another possible Dividend cut this year since the quarterly commitment is stressing free cash flow. Hold on to your hat's boys and girls, this year is about to get interesting.
13 replies (most recent on top)
There is going to be lots of free cash flow. Are we going to see a dividend increase?
Cutting the dividend would be a disaster as it is likely the most appealing aspect that makes it attractive to investors in the current economic environment. Recall the April 2022 WBD spinoff which included a dividend cut. It took only a few days for the WBD stock to drop in price, which didn't help matters. That spinoff generated the second largest selloff volume of T in 5 years (only the March 2020 market drop was greater, but then most all stocks took a hit). Income investors like high yields, which T has at the moment. Cut into that income stream, the yield drops, investors hit the sell button, the stock price goes down and T has to sell more stock (read "print money") and hope there are buyers out there. If the price falls by a large amount, the company might have to go into debt to fund its activities (and we ALL know how much fun that is!).
It might save this company some coin (and raise moral a bit) if they'd cut Randall's $275k PER MONTH pension. OMG, after putting T into $180B in debt and leaving with this ludicrous pension, its absolute highway robbery!
Please pay Stankey in T stock options only.
Don't cut the dividend. I own AT&T stock.
Who cares? Quit with at the idle threats, if they are going to cut the dividend, just cut it and be done with it. Why not just eliminate it?
Why cut the dividend when there is so much free cash flow?
This company is in deep dudu.
When will you people finally get it? Wall Street does not like Stankey. Wall Street does not respect Stankey. Stankey had best stay where he is at at&t, no other company would even consider him for a entry level position.
Don't wet your pants. Dividend is safe. Debt is safe.
Stock keeps dropping a reverse split is in order. The dividend reduction would be built in then.
The company continues to borrow billions despite being over $120 billion in debt!!
“Leadership” doesn’t decide dividend. The board does. Another load of excr-ment.
Cutting the dividend would be disastrous short term but might have benefits down the road. T needs to get their house in order and this might be the way to help. However, if we look at how bad the company has been managed in the last decade this may be yet another mail I’m the coffin.