AT&T set out to announce a transformative deal this past week, but the company’s shareholders got stuck on the fine print disclosed in the news: AT&T was slashing its dividend.
The spinoff of WarnerMedia—and its subsequent combination with Discovery (ticker: DISCA)—is a vital course correction for AT&T (T) as it seeks to regain its telecom leadership. The issue for investors is that AT&T’s fundamentals have long played second fiddle to the company’s generous dividend. AT&T’s shares tumbled 10% in the three days after the…
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