As always, when it comes to dividend safety, we need to look at free cash flow growth. And AT&T's is rocky, at best. As you can see in the chart below, the company's free cash flow collapsed in 2022. Even though the recovery in 2023 was enormous, free cash flow has been steadily declining ever since, with predictions in 2025 and 2026 looking even more grim. AT&T's free cash flow sat at over $20 billion in 2023, fell to $18.5 billion in 2024, and is expected to drop below $17 billion by 2026. While forward estimates are never perfect, they can still give us a glimpse into a company's outlook. AT&T's dwindling free cash flow spells trouble for its dividend. However, a company's dividend history is another factor that's arguably just as important. Is AT&T's track record strong enough to overshadow the concerns about its cash flow? |
Tidak ada komentar:
Posting Komentar