3 Green Flags for AT&T's Future

AT&T (NYSE: T) was once considered a stable stock for long-term investors, but it lost more than a third of its value over the past five years. That decline can be attributed to competitive headwinds in the wireless market, the slow death of its pay-TV business, its debt-fueled acquisitions of DirecTV and Time Warner to offset that secular decline, and its costly 11th-hour attempts to build a streaming media ecosystem to counter the cord-cutting trend.

The pandemic exacerbated that pain by disrupting WarnerMedia's theatrical releases and its production of new content. All those headwinds made it tough to invest in AT&T, even as its price-to-earnings ratio dropped to the single digits and its dividend yield hit an all-time high.

Image source: AT&T.

Source Fool.com