AT&T (T, $31.39) to cut dividend payout ratio, amid media asset merger with Discovery
AT&T will slash its dividend payout ratio by more than 20 percentage points, amid its media asset merger with Discovery .
AT&T said its dividend payout ratio, which was around 63% in the previous quarter, will be "re-sized" to account for the distribution of WarnerMedia assets into a new company. The remaining AT&T assets will intend to give shareholders a dividend payout ratio of between 40% and 43%, based on expected free cash flow of around $20 billion.
AT&T Inc. agreed to spin off its media operations in a deal with Discovery Inc. that will create a new company, merging assets such as CNN and HBO with HGTV and the Food Network. The transaction values the combined entity at about $130 billion including debt, based on WarnerMedia’s estimated enterprise value of more than $90 billion.
As part of the 'Reverse Morris Trust' agreement structure, AT&T shareholders will own 71% of the combined entity. The entity is expected to generate $52 billion in 2023 revenues and a combined subscriber base of nearly 150 million.
Aroon Indicator for T shows an upward move is likely
T's Aroon Indicator triggered a bullish signal on April 14, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 247 similar instances where the Aroon Indicator showed a similar pattern. In of the 247 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 09, 2025. You may want to consider a long position or call options on T as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for T just turned positive on April 30, 2025. Looking at past instances where T's MACD turned positive, the stock continued to rise in of 56 cases over the following month. The odds of a continued upward trend are .
T moved above its 50-day moving average on April 22, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where T advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for T moved out of overbought territory on April 04, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 58 cases where T's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where T declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. T’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.212) is normal, around the industry mean (4.826). P/E Ratio (8.883) is within average values for comparable stocks, (115.978). Projected Growth (PEG Ratio) (1.361) is also within normal values, averaging (8.215). Dividend Yield (0.063) settles around the average of (0.059) among similar stocks. P/S Ratio (1.037) is also within normal values, averaging (13.703).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a provider of dsl internet, local and long-distance voice and data services
Industry WirelessTelecommunications