Bought quite a bit of AT&T Stock recently mainly because of the 7% dividend yield and the company’s payout ratio is around 55% on average so should be more room to grow. What are all your thoughts on this?
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See it as a corporate bond , with a probability of appreciation and you will be fine.
AT&T, BP, Shell. Imperial and others are among my dividend stocks.
Shell took the world by surprise by cutting dividend this year, so be mindful any company can cut or stop dividend at any point in time.
Dividend is desirable but never guaranteed and nothing within my post constitute any financial advice
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Yield hunting normally backfires. Never buy a company because of a dividend yield. Look at the underlying assets and decide because of that.
To answer your question I don’t think it’s good. Shedding too many assets and a failing HBO strategy.
An interesting observation - yes I completely agree looking for high dividend yields often backfires however I do feel AT&T should be ok especially due to the fact their earnings seem to be OK and they are successfully reducing their debt load/refinancing it at much lower interest rates. I think it was a mistake to put the entire 2021 slate of WarnerBros Films on HBO Max - they should’ve opted for PVOD albeit much lower than Disney’s Mulan PVOD price. For instance Wonder Woman 1984 should’ve been put on for around $9.99 with a HBO Max subscription. Also the fact HBO Max is only available in the United States is an issue.
Yeah I don’t think AT&T will cut their dividend - at worse they won’t increase it for a while.