AT&T Shed Media Assets in 2021. This Year It Wants to Add Investors.

Author: Editors Desk Source: WSJ:

January 5, 2022 at 08:11

AT&T Chief Executive Officer John Stankey. Investors are split on the outlook for the company. PHOTO: MATT WINKELMEYER/GETTY IMAGES

Telecom giant’s stock slump last year shows that investors have yet to buy into management’s promise to reinvigorate the company

AT&T Inc. T 0.83% faces a busy year as it tries to complete a divorce with its entertainment business, ease investor concerns about its dividend and show that it can continue to woo new wireless customers.

The Dallas conglomerate spent much of 2021 on what amounted to a gut remodel. It kicked off a series of big divestitures spanning pay TV, media production and advertising, moves aimed at refocusing AT&T on more predictable growth opportunities from profit centers such as wireless and broadband service.

Wall Street analysts broadly welcomed the changes. The stock price didn’t reflect a similar embrace by investors.

AT&T’s shares slumped 14% in 2021 and briefly touched 12-year lows in December before recovering. The selloff has pushed its dividend yield—a ratio reflecting the cash a company pays its shareholders divided by its stock price—above 8%. The S&P 500 gained 27% in 2021.

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