Keep in mind, we have no US companies in our screeners. They're strictly Canadian.
AT&T's dividend is going to drop, as it is being cut due to their spin off. However, the total dividend paid from both companies is likely to be the same, as a shareholder you'll receive some stocks from the spin off.
AT&T on a total return basis has been, to put it quite bluntly, an awful investment over the last 1, 3, 5 and even 10 year periods. Over the last 10 years, if you had reinvested the dividends received you'd have total returns of 42%. In contrast, the S&P 500 has gained 345% since then.
If you had invested in any of our telecoms, you'd also be sitting on considerably higher total returns (I've attached a chart). In my opinion, our telecom sector provides more of an economic moat, less overall competition and stronger growth.
People have been saying AT&T is going to turn it around for a very long time. But, it simply hasn't. The company is undervalued, especially when we consider their excessive cash flow. But, the market is likely paying this valuation because the company hasn't really moved the needle over the last half decade. Revenue has grown by less than 2% annually.
The company has been a dividend trap for quite some time now. Whether it'll turn things around remains to be seen, and the spinoff is certainly somewhat promising. But if you want my honest opinion, I wouldn't be buying the stock.