Although
AT&T has a low price/earnings multiple of 16 and above average dividend yield I would think twice before entering a position there. The decline in ROE and EPS is warning sign for me, as is the steady increase in the DPR. Without any future growth in EPS, the company would be unable to maintain its current dividend policy of rewarding shareholder with future dividend increases. The only appealing thing right now is the high dividend yield of 5%.