AT&T's Series C preferred ADS (under ticker T.PR.C) provides cumulative dividends yielding 6.26%, offering stable income backed by reliable telecom cash flows. AT&T reported strong Q1 2025 revenues and healthy free cash flow, which continues to support its safe preferred dividend coverage. In fact, AT&T's debt levels have also significantly improved from $155.2B in 2020 to $127.9B in Q1 2025.
AT&T Inc. (NYSE:T ) JPMorgan 53rd Annual Global Technology, Media and Communications Conference Call May 13, 2025 8:50 AM ET Company Participants Jeff McElfresh - Chief Operating Officer Conference Call Participants Sebastiano Petti - JPMorgan Sebastiano Petti Good morning, everyone. I'm Sebastiano Petti and I cover the telecom, cable and satellite space for JPMorgan.
AT&T (T) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
AT&T (T -0.53%) and Verizon (VZ -0.41%), two of the largest telecom companies in America, are both often considered stable income stocks. But over the past three years, AT&T's stock rallied nearly 50%, as Verizon's stock declined 5%.
T benefits from focus on 5G and fiber, but intense competition from behemoths and a steady decline in legacy services remain concerns.
AT&T's preferred shares offer an excellent risk/reward ratio for income-focused portfolios, with strong cash flow performance and a low payout ratio ensuring dividend safety. Despite increased operating expenses, AT&T's net profit rose to $0.61 per share (including non-recurring items), with adjusted net profit up 6% year-over-year. AT&T's 2025 guidance remains strong, expecting $16B+ in free cash flow and planning $3B in share buybacks by year-end.
AT&T has continued to see its share price grow, but still has room to continue growth. The company is growing its fiber business while generating strong cash flow. Overall, the company will be able to direct its cash flow towards both dividends and share repurchases.
AT&T (T -0.16%) stock has been a strong performer, surging 64% over the last year. But Tigress Financial analyst Ivan Feinseth sees more upside following AT&T's first-quarter earnings report.
For the big three players in the United States telecom sector, Q1 earnings are in the books. Verizon Communications NYSE: VZ, T-Mobile NASDAQ: TMUS, and AT&T NYSE: T are by far the most prominent players in this industry, and they compete fiercely.
24/7 Wall St.
T is benefiting from solid demand for its postpaid services, while with a healthy cash flow and network expansion, VZ is strengthening its foothold in the market.
AT&T (T) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.