AT&T (symbol T) has streamlined its business by divesting AT&T TV, Warner Media, and DirecTV. Fiber expansion and streamlined business combined with cost improvements of $6 billion in run rate should drive improved profitability. However, we do have concerns about the debt level and the company’s ability to reach its FY25 goals. AT&T offers income generation and an option on the expectations that a streamlined business will produce better profitability which should drive near-term earnings improvements even though the secular long-term growth potential is very modest.
- 6.3% Dividend Yield.
- TV and Media business units have been divested.
- Fiber and cellular 5G are the focus.
- Pullback in price marked an attractive entry point for dividend-seeking investors.
- Fiber expansion offers a growth opportunity.