AT&T: Junk Bond Proxy
After it's divestment of WarnerMedia and DirecTV, AT&T has become a much slimmer company, but it's still plagued by a high debt load and a fundamentally low growth business. AT&T dividend payments should be treated similar to bonds coupons since they don't have a strong track record of organic growth. With a business that is stagnant, AT&T post-spinoff, in my view, should trade similarly to a junk bond.