Investors who watch AT (NYSE: T) closely know that it has spent the last two years atoning for a costly mistake. It not only strayed from its core service offerings but also overpaid to enter the pay-TV and content markets.

But although it has spun off DirecTV and the former WarnerMedia to Warner Bros. Discovery, investors continue to hang up on the stock, and its dividend is a likely reason. Despite the 47% cut, the payout has brought consternation instead of relief -- so much so that AT might want to eliminate the dividend completely.

The focus on the dividend might come as a surprise, since after 35 years of consecutive increases, AT slashed the annual dividend from $2.08 per share to $1.11 per share. Since the current payout offers a dividend yield of 6.8%, AT might appear to have merely adjusted the dividend to an appropriate figure.

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Source Fool.com