AT (NYSE: T) stock is an alluring option for income investors thanks to its robust dividend, which at current share prices yields nearly 7%. Despite this -- and the company's position as one of the biggest U.S. telecoms -- at is not a straightforward investment to evaluate.

A series of costly entertainment-industry acquisitions a few years ago saddled it with massive debt. On top of this, AT is making "historically high levels of investments in 5G and fiber" to expand its networks, according to Chief Financial Officer Pascal Desroches.

This mix of high debt and unusually large capital outlays might put AT on precarious financial footing. However, the results from the first quarter of 2023 showed some positive trends. Yet they revealed one warning sign as well.

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Source Fool.com