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In a world of low interest rates, dividend stocks can be a blessing for investors who need income. But it can be a nightmare if a company cuts the dividend payout.
For example, on May 18, shares of AT&T Inc. T fell 6% after the company announced a change of strategy — a plan to reverse years of expensive acquisitions by spining off WarnerMedia in a deal with Discovery Inc. DISCA. Investors weren’t happy with AT&T’s plan to “resize” its dividend, with the yield on the shares expected to decline to roughly 4% from 7% before…
