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Thread: ATT Drops Dividend Payments

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    ATT Drops Dividend Payments

    Not usually a good sign for the financial health of the company.

    I expect ATT to start cutting some brands and/or services with possible layoffs and big resignations.


    https://www.google.com/amp/s/www.bar...us-51585941533
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    It doesn't help that some of what ATT sells is "optional". Personal cash flow drops due to the layoffs? If you aren't locked in a DTV contract, go with OTA if in range for network and a single streaming service.

    If you aren't in a device payment plan, you can drop to a prepaid service and save money.

    I was recently on T-Mobile postpaid, but dropped to prepaid to save money. My data usage has dropped since I'm now tele working. So I have my home internet.

    And ATT has made other decisions through the years that I don't agree with. 20 years ago, they had DSL which was competitive with the cable internet at the time. It was more reliable, and I went there from a cable company that used dialup for the upstream channel. Except for a few markets, they essentially decided to not invest in being an alternative for internet with the cable companies. Seemed to think that wireless internet was the way to go. Doesn't seem to work well for other than phone use as a replacement.
    iPhone 11 is my current primary phone. But I have more phones than lines. Back to only Prepaid with the changes in the economy.

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    ATT Drops Dividend Payments

    Yeah the TimeWarner Media and DirecTV acquisitions put MaBell in some very serious debt.

    Just last year they had $29 billion in free cash so they were able to make their super expensive dividend payments from that.

    This year they can’t pay. A few weeks ago they actually tried to take out a loan to help pay those dividends and expand their 5G network. https://finance.yahoo.com/amphtml/ne...182334934.html

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    ATT Drops Dividend Payments

    Quote Originally Posted by @TheRealDanny View Post
    Yeah the TimeWarner Media and DirecTV acquisitions put MaBell in some very serious debt.

    Just last year they had $29 billion in free cash so they were able to make their super expensive dividend payments from that.

    This year they can’t pay. A few weeks ago they actually tried to take out a loan to help pay those dividends and expand their 5G network. https://finance.yahoo.com/amphtml/ne...182334934.html
    Att had cuts planned that are still on the books .. they had planned for March if you cut them .. you look like the villain.. which was a good PR move


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    Quote Originally Posted by tyroned3222 View Post
    Att had cuts planned that are still on the books .. they had planned for March if you cut them .. you look like the villain.. which was a good PR move


    Sent from my iPhone using Tapatalk
    Agreed....

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    I suspect that most companies won't be paying any dividends for the next year or more.

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    Honestly, I expected this long before now. AT&T needs that money to finish digesting all it's purchases and actually do meaningful investment in the company.

    NO company that provides infrastructure has any business being traded on the stock exchange anyway, as the shareholders will always bleed it dry before any meaningful investments are made.
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    AT&T has already announced it will pay it's 52 cent a share dividend May 1. Barron's is just an opinion piece. They, and the weatherman, have a 50% chance of getting it right.
    And if you could get a zero per cent loan to re-finance a higher rate loan, wouldn't you do that??

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    Quote Originally Posted by stclair49 View Post
    AT&T has already announced it will pay it's 52 cent a share dividend May 1. Barron's is just an opinion piece. They, and the weatherman, have a 50% chance of getting it right.
    And if you could get a zero per cent loan to re-finance a higher rate loan, wouldn't you do that??
    So they took out a loan to pay the dividends?

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    Did anyone actually read the article? Apparently not, because nowhere in it does it state AT&T has stopped paying dividends. The article is merely a look at what the author thinks it would take for AT&T to stop paying it, nothing more.
    I do not represent any company or other entity. Anything I post in these forums or write on this site are my thoughts and opinions only. I make every attempt to be 100% accurate, but I am human and do make mistakes from time to time.

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    Quote Originally Posted by @TheRealDanny View Post
    Yeah the TimeWarner Media and DirecTV acquisitions put MaBell in some very serious debt.

    Just last year they had $29 billion in free cash so they were able to make their super expensive dividend payments from that.

    This year they can’t pay. A few weeks ago they actually tried to take out a loan to help pay those dividends and expand their 5G network. https://finance.yahoo.com/amphtml/ne...182334934.html
    Didn't they also fire some 37,000-ish people after the TW acquisition? Mergers are rarely good for employees and customers

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    Quote Originally Posted by BMWDude49120 View Post
    Did anyone actually read the article? Apparently not, because nowhere in it does it state AT&T has stopped paying dividends. The article is merely a look at what the author thinks it would take for AT&T to stop paying it, nothing more.
    And, the article didn't even ask what it would take to *stop* paying, but what it would take to "cut", (meaning "reduce" it.)

    AT&T's current dividend is around 7%, compared to the 4+% Verizon pays. Utilities, like phone companies, typically pay high dividends. The premise of the article wasn't "AT&T is too broke to pay dividends", it was "since AT&T bought DirecTV and Time-Warner, they've become less of a 'phone' company (telephony is now only 40% of their revenue) and should probably pay a lower dividend, like other non-phone companies do."

    Either way, yeah, the OP misread (or didn't read) the article.

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    Quote Originally Posted by bmtvaquero View Post
    I suspect that most companies won't be paying any dividends for the next year or more.
    This. If anyone has been reading business reports lately, there is a plethora of stories about many companies reducing their dividends.
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    This deal is expected to be completed about now.

    “ AT&T said Wednesday it is selling its wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands to Liberty Latin America, in a cash deal valued at $1.95 billion that will help the telecommunications and entertainment company pay down debt.”

    AT&T sells Puerto Rico and U.S. Virgin Island assets to Liberty Latam in $1.95 billion deal

    http://www.marketwatch.com/story/att...eal-2019-10-09

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