How Safe Are AT&T and Its Dividend?

AT&T (NYSE:T) has paid shareholders a dividend since 1984. The amount of that payout has varied greatly, but the company has not skipped a quarter in the entire history of its dividend program. While the road has been a bit rocky, AT&T has been steadfast in handing money over to its shareholders. And in recent years, the numbers have settled down a bit, with the company slowly raising its dividend from $0.31 per share per quarter in 2004 to $0.52 for its next quarter, in 2020. History shows that AT&T has been a safe bet for dividend investors and people building out a retirement portfolio. However, the market for some of the company's core products is changing, and that could put the dividend at risk.

Essentially, AT&T is telling shareholders that it knows DIRECTV has problems, but that the company can handle the subscriber loss by making more money in other areas. It seems to have a solid plan to do that, but it remains at least a little vulnerable if something else in its portfolio falters. That could happen, but doesn't seem all that likely. AT&T has a problem with its satellite TV business, but it's managing the declines and the issues should not threaten its dividend. This isn't a completely safe dividend -- the company does have some challenges to navigate -- but it's a very strong bet. And management appears to have a very reasonable plan for growth.

Source: Motley Fool

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