What happened to AT&T after a spin-off?

Warner Bros. Discovery now includes all of AT&T's former streaming, film and television assets and the company is set to compete with fast-growing streaming businesses like Netflix ( NFLX) for market share and revenue growth. The initial performance of AT&T after the spin-off has been impressive… with shares surging more than 7%.

What will AT&T's final dividend look like after the spin-off?

However, given that the value of the spin-off could take $6 to $7 off of the post-spinoff price of AT&T, its final dividend will be closer to 6.0% to 6.3%. Here is how the math of that works out. On the day of the spin-off, the price of AT&T will fall automatically.

How much will AT&T's WBD shares be worth after a spin-off?

With a new price around $22 to 23 per share, and a dividend around $1.16, that would give AT&T a 5% to 5.3% dividend yield . However, the WBD shares will be worth $6 to $7 after the spin-off, bring the total value received back to $28 to $29.

Who makes AT&T products & services?

AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. © 2022 AT&T Intellectual Property. All rights reserved.