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AT&T Falls as Investors Digest Deal, Smaller Dividend Payout (1)

May 18, 2021, 7:50 PM

AT&T Inc. fell the most in more than a year as investors digested plans for a smaller dividend payout from the phone giant following the planned merger of its WarnerMedia division with Discovery Inc.

Shares of AT&T fell as much as 7.9% Tuesday in New York, the steepest intraday decline since March 2020. The stock had gained 9.1% so far this year through Monday’s close. Discovery shares fell less than 1% Tuesday to $33.80.

Without the cash flow from WarnerMedia, AT&T said Monday that it will lower its dividend payout ratio to 43% of cash flow. That translates into to ...

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