AT&T Inc. (NYSE:T) has been underperforming, as it has declined about 5% and 9% in 2021 and for the past year respectively. There has been an abundance of news since the last time I wrote about T stock.
There has been a catalyst that changes how attractive T stock is in a portfolio for income generation, as its current forward dividend and yield of $2.08 and 7.6% respectively are to be trimmed down about 50% in 2022.
I wrote last year that “while the expected growth for the next three to five years is 3.42%, this stock has an attractive dividend yield. Its forward dividend and yield are $2.08 and 7.27% respectively, compared to the average S&P 500 yield of about 1.64%.” I considered it to be a key player in the 5G industry and was optimistic.
With the pending dividend cut, I have both good news and bad news now to base my analysis on. But first, let me state by saying that the 5G industry is set to be a game-changer in areas as diverse as autonomous driving, smart cities, smart homes, healthcare and logistics and shipping.