AT&T’s 6.5% Dividend Is About to Get the Axe — What to Do Now

AT&T’s big news this week will hit its dividend. Let’s see if this is still an income stock to own. [Turn Your Images On] Dividend of the Week [AT&T’s 6.5% Dividend Is About to Get the Axe — What to Do Now]( [Turn Your Images On] [Charles Sizemore, Editor, Green Zone Fortunes]( AT&T Inc. (NYSE: T) dropped a major bomb on investors this week, and the news is going to be felt in its dividend. AT&T is punting on its Time Warner media business which includes heavyweight properties like HBO, CNN and the DC comic universe. The deal creates a much larger content company, one that might compete with Netflix Inc. (Nasdaq: NFLX) and The Walt Disney Co. (NYSE: DIS). Once the Warner assets are spun off, AT&T will be a dedicated communications utility again. As part of the deal, AT&T will shed about $43 billion in debt — which is great for the long-term health of the company — but it will also sport a lower dividend going forward. Back in November, I touted AT&T as a solid long-term buy that would keep pace with the market while paying out a hefty yield. [Let’s see if that’s still the case after this big news.]( Suggested Stories: [3 Ways to Safeguard (and Grow) Your Dividends as Inflation Ticks Higher]( [Bigger Than the Internet: DNA Will Lead the Next Stock Market Wave]( --------------------------------------------------------------- FROM OUR PARTNERS [Trump’s Final Gift To America]( There’s a little-known way Trump could – one day – have his revenge. It involves a Federal Ruling he oversaw in the final year of his Presidency that could change America forever … unleash an estimated $15.1 trillion in new wealth … and create countless ways for everyday Americans to benefit. What is this little understood decision? And how will it impact you? 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