This Ultra-High-Yield Dividend Stock's Investors Can Breathe a Sigh of Relief

Shares of AT (NYSE: T) have fallen more than 25% from their 52-week high. Weighing on the telecom giant's stock is concerns about its free cash flow. That has caused some worries that it might not be able to maintain its lofty dividend, which now yields more than 7% following its share price decline.

However, dividend investors can breathe a bit easier after AT's CFO recently said the company is on track to achieve its free cash flow guidance for the year. That suggests the dividend won't see another reduction in the near term. Nevertheless, that doesn't mean income-focused investors should rush out and buy its stock.

AT's CFO Pascal Desroches recently affirmed the company would produce between $4.5 billion and $5 billion of free cash flow during the third quarter. That gave the CFO the confidence to reiterate the company's guidance that it would generate AT least $16 billion in free cash this year. 

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Source Fool.com