Tag Archives: VZ

Debt and Dividend Problems Will Plague AT&T Stock

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I don’t know why anyone would want to buy AT&T (NYSE:T) stock.

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The moves into content by former CEO Randall Stephenson bombed spectacularly. Shareholders are left with $177 billion in debt and, starting next year, a skinnier dividend. The company’s wireless prospects are decent, but only because it can rip off customers.

I called AT&T a yield trap a year ago, as it turned out to be. Before the dividend cut, I was optimistic about its 5G spectrum. I called it a “sell” after the cut.

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AT&T’s Upcoming Discovery Deal Is Its Only Appeal

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AT&T (NYSE:T) stock has been a major disappointment for shareholders. T stock is down not just year-to-date, but also over the past 12 months. Additionally, it has lost roughly 25% of its value compared to where it traded prior to Covid-19. All this occurred in the midst of the huge market-wide bull run.

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AT&T’s problems stem from a long-running issue: its lack of growth. AT&T’s core telephone business is a cash cow, but it has limited growth prospects. To overcome that, management engaged in an increasingly....More>>>