The Bottom Line
It wont, and stock will be in free fall, Should investors buy AT&T for the upcoming dividend? Earnings per share have been shrinking in recent times. What's more, AT&T is paying out a majority of its earnings and over half its free cash flow. It's hard to say if the business has the financial resources and time to turn things around without cutting the dividend. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being.