Rabu, 02 April 2025

👀 Looks Can Be Deceiving

Shield

AN OXFORD CLUB PUBLICATION

Loyal reader since June 2022

Wealthy Retirement

View in browser

SPONSORED

The #1 Energy Passive Income Investment for 2025

It's not a stock, bond or private company...

But this little-known alternative investment could hand you BIG MONTHLY INCOME from the oil and gas surge in 2025.

CLICK HERE TO FIND OUT WHAT IT IS

AT&T Is a Cautionary Tale for Income Investors

John Oravec, Research Analyst, The Oxford Club

John Oravec

When you look at a stock chart, it seems reasonable to assume that if the price is going up, then the company must be doing well.

And right now, AT&T's (NYSE: T) price is certainly going up.

Since October 2023, AT&T has been on a tear, with relatively few snags. The stock is currently trading at highs not seen since early 2020.

Chart: AT&T's (NYSE: T)
View larger image
 

With all of this momentum behind the stock, you may think the company's dividend is as safe as can be. You might even go so far as to believe that the company will raise the dividend in the near future.

Well, I'm here today to reveal to you that not everything is as it seems when it comes to this telecom giant. You can call me "Party Pooper John," because I'm about to rain on AT&T's parade.

Let's see what the numbers have to say...

SPONSORED

You're Invited to "Beta Test" TradeSmith's NEWEST Strategy

Announcing one of the biggest investment breakthroughs in our industry: a new way to potentially double your portfolio, by predicting the biggest jumps on 5,000 stocks - to the day - with backtested 83% accuracy. It works by using a secret pioneered by a hedge fund that's turned every $100 stake since inception into $2.1 million.

Learn more in the Breakthrough 2025 event on Tuesday, April 8 at 1 p.m. ET. Click here to register for the free online event and begin the beta test.

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.

Chart: AT&T's (NYSE: T)
View larger image
 

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?

Find Out Here!
Access a Free List of Marc Lichtenfeld's Favorite Dividend Stocks. Click here.

Discover the Top Passive Income Opportunity for 2025...

This Extrordinary Breakthrough Doubled the Market's Return

Whatever You Do, DON'T Invest in the Wrong AI Companies.

Bonds: The Dividend Investor's Secret Weapon

SPONSORED

Yours Free! Top FIVE Dividend Stocks Right Now

Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge!

You'll discover...

  • An "A"-rated, ultra-safe dividend stock with a huge 8% yield
  • Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income
  • And finally, Marc's No. 1 dividend stock for a LIFETIME of income.

Click here to get the names and ticker symbols now... before the download link expires.

**NO CREDIT CARD REQUIRED!**

Tidak ada komentar:

Posting Komentar