Should You Buy AT&T for Its 7% Dividend Yield?
AT&T (NYSE: T) recently posted weak first-quarter numbers, and pulled its forward guidance in light of the COVID-19 pandemic. The telecom and media giant's revenue fell 5% annually to $42.8 billion, missing estimates by $1.4 billion.
Its non-GAAP earnings dipped 2% to $0.84 per share, also missing expectations by a penny. Excluding the impact of COVID-19, which reduced its earnings by about $600 million, its EPS would have risen 3% to $0.89.
On their own, those numbers look dismal. However, many investors might be eyeing its forward yield of nearly 7%, which the company remains committed to paying. Should investors buy AT&T for that beefy dividend, or are its weak spots too soft to ignore?
Source Fool.com
