Is AT&T's 7.5% Dividend Yield Sustainable?

The last few years have been tough sledding for shareholders of AT (NYSE: T). The telecommunications giant made some blunders last decade, none more impactful than its purchase of Time Warner. The debt-fueled acquisition worth $85 billion was closed in 2018, but was spun off from AT last year due to severe underperformance.

So it is no surprise then to see AT shares significantly underperforming the broad market in the past three years, posting a total loss of nearly 12% versus gains of 31% in the S 500. 

However, with shares down in the dumps, AT's dividend now yields an attractive 7.5%, with its core business still growing customers. Is this dividend yield sustainable, and should it lead you to buy shares of AT? Let's run the numbers and find out. 

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Source Fool.com