The telecom has agreed to sell its 70% stake to private equity firm TPG Inc.
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AT&T shares rebounded impressively, generating 28.68% YTD returns, outperforming the S&P 500's 11.2% gains, prompting an upgrade to a "buy" rating. Strong Q2 results with 419,000 new wireless subscribers and a 0.7% churn rate, alongside a 9% increase in free cash flow, support this upgrade. Despite an 8% decline in mobility equipment revenue, AT&T's valuation remains attractive, trading at 9.14x 2026 earnings and 7.4x free cash flow.
While rate-cut optimism could be helping AT&T's stock toward its best month in nearly two years, there's also been growing validation of the company's fiber strategy.
AT&T's fundamentals have improved since refocusing on telecommunications. Lower interest rates make AT&T's 5.1% dividend yield more attractive.
AT&T's stock has appreciated due to a favorable macro environment and successful deleveraging, making it an attractive long-term investment. Growth catalysts include expanding fiber footprint, increasing subscribers, and solid mobility business performance, supporting continued momentum. AT&T's improved debt profile and high dividend yield make it appealing, especially with expected Federal Reserve rate cuts.
AT&T's Fiber Broadband growth and increased free cash flow make it a compelling option for passive income investors, with a low dividend payout ratio. The Telco's reaffirmed 2024 free cash flow forecast and low valuation based on profits bolster the investment thesis despite recent 52-week highs. AT&T's stock remains moderately valued at 9.5x leading profits, with an intrinsic value estimate of $23-$25, driven by robust FCF growth.
We were aggressive buyers of AT&T Inc. stock sub $15 but were asked plainly “if we were wrong to sell at $19?”. The concept of a house position for future gains is considered. Recent developments include potential DirecTV-Dish merger talks and new labor agreements, which could positively impact future operations and reduce debt.
High-yield dividend stocks are in the spotlight with the central bank poised to cut interest rates. AT&T's 5.1% yield is substantially higher than its peer-group average.
Telefonica and AT&T are high-yield telecoms with checkered pasts. Both have made a lot of progress towards deleveraging and putting their businesses and dividends on a more sustainable path. We compare them side-by-side and share our take on which is the better buy today.
The Federal Communications Commission (FCC) has reached a settlement with AT&T that resolves the agency's investigation into a January 2023 hack in which AT&T customer information was taken from a vendor's cloud environment.
AT&T has agreed to pay $13 million to resolve an investigation over a data breach of a cloud vendor in January 2023 that impacted 8.9 million AT&T customers, the Federal Communications Commission said Tuesday.