AT&T
stock plunged by 10%, its biggest percentage drop in more than two decades, after the company’s first-quarter earnings release on Thursday. A key concern: Free cash flow was far lower than expected.
Free cash, of course, is a crucial foundation for paying a company’s dividend. And for AT&T (ticker:T), which yields 6.1%, the dividend is a key selling point to the company’s investor base. First-quarter free cash totaled $1 billion, against a $2 billion quarterly payout for dividends.
Source: https://www.barrons.com/articles/at-t-cash-flow-dividend-stock-earnings-fea3533-1a9ce2d3f5fb?siteid=yhoof2&yptr=yahoo