TBC - AT&T: Don't Sell Before The Warner Bros. Discovery Spin-Off

• AT&T's Analyst and Investor Day Presentation last week stoked mixed investor sentiment for the stock.
• On one hand, dividend- and income-focused investors were taken back by AT&T's decision to slash dividends on the lower range of its original post-close dividend pay-out guidance.
• On the other hand, the company has provided assurance for a return to GDP+ growth in coming years as it regains focus in capitalizing on 5G and fiber momentum ahead.
• While dividend-focused investors who have put their money into AT&T for generous yields in the first place may not be interested in the upcoming Warner Bros. Discovery spin-off, we believe there are attractive upsides in the newly combined company that could potentially more than offset AT&T's dialed-back dividends.
• Meanwhile, AT&T's dividend yield, despite the trim down, still beats those of its industry peers and other dividend-paying stocks on the market. Paired with its sustainable growth outlook ahead, the stock remains a candidate for improving annual dividends and share performance over the longer-term.

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