Is AT&T dividend safe? (2024)

Is AT&T dividend safe?

Despite the substantial debt, AT&T's dividend looks secure. The company generated $5.2 billion in Q3 free cash flow (FCF), an impressive year-over-year increase of $1.3 billion. FCF provides insight into the cash a company has available to invest in its business, pay debt, and repurchase shares or fund dividends.

How safe is AT&T dividend?

That's a very healthy number, as investors should only get concerned if this metric rises to above 50% for common companies or 75% if it's a company in a mature and dependable industry like a telecom or utility. With that in mind, it's safe to say that AT&T's dividend is safe for investors.

Should I buy AT&T stock for dividends?

Its $1.11 per share annual payout now offers a dividend yield of 6.7%. This is around 4.5 times the S&P 500's average dividend return, which has now fallen below 1.5%. Still, investors should approach this dividend cautiously. AT&T slashed the payout in early 2022 after 35 straight years of payout hikes.

Why does AT&T have a high dividend?

Investors can see that over the past year AT&T has generated billions of dollars in free cash flow. In turn, the company has been able to use its cash flow to continue paying down debt as well as reward shareholders with a dividend.

How reliable is dividend income?

Because dividend payments are often paid out on a regular basis, they can offer a reliable source of income for investors seeking to supplement their other income sources.

Is AT&T's 7% dividend yield sustainable?

Furthermore, its dividend yield of close to 7% is a great play for income-oriented investors, as the dividend is clearly sustainable in the short to medium term, even considering potential risks like the lead cable issues.

Are Verizon and ATT dividends safe?

AT&T, VZ dividends look safe

Perhaps more importantly, the dividends look safe. Citi analyst Michael Rollins this week raised his recommendations on both AT&T and Verizon to Buy from Neutral (the equivalent of Hold). He also maintained his "High Risk" rating on both stocks.

Is AT&T a good long term stock?

Fair Value Estimate for AT&T Stock

Our estimate implies an enterprise value of 7.5 times our 2024 EBITDA estimate and equals a 10% free cash flow yield based on actual 2023 results. In total, we believe consolidated revenue can grow 2%-3% annually over the next five years.

Does Warren Buffett own AT&T stock?

Warren Buffett has invested in all three major U.S. wireless carriers, but Berkshire Hathaway (NYSE: BRK. A) (NYSE: BRK.B) currently owns just one. T-Mobile (NASDAQ: TMUS) has outlasted its peers AT&T (NYSE: T) and Verizon (NYSE: VZ) in Buffett's portfolio.

Is ATT stock worth keeping?

AT&T has 14.08% upside potential, based on the analysts' average price target. Is T a Buy, Sell or Hold? AT&T has a conensus rating of Moderate Buy which is based on 8 buy ratings, 5 hold ratings and 1 sell ratings.

How much will AT&T dividend be?

Share. Key Takeaways: The board of directors declared a quarterly dividend of $0.2775 per share on the company's common shares. Dividends on common stock and Series A and Series C preferred stock are payable on February 1, 2024.

What is AT&T dividend for 2023?

AT&T Inc. Historical Common Dividends Data
YearPayment DateAmount
143 more rows

Will AT&T dividend increase?

The company hasn't announced a dividend increase since it spun off WarnerMedia in 2022, which is now part of Warner Bros. Discovery, but in light of its strong results, it may not be out of the question.

What are the safest dividends?

Kinder Morgan (NYSE: KMI), Equinix (NASDAQ: EQIX), and Lockheed Martin (NYSE: LMT) are three super-safe dividend stocks because they generate contractually secured cash flow and have strong financial profiles. That makes them great options for those seeking to fortify their dividend income in 2024 and beyond.

What are the safest high yield dividend stocks?

The S&P 500 Dividend Aristocrats
CompanyTickerYears of dividend growth
Emerson ElectricEMR67
Genuine PartsGPC67
Procter & GamblePG67
63 more rows

Are monthly dividend stocks safe?

Monthly dividend stocks are a reliable way for investors to generate regular passive income due to their consistent stream of cash flow. They offer more frequent payments than quarterly or annual dividends and can be used to supplement other sources of income or cover living expenses.

Is AT&T no longer a dividend aristocrat?

And because all things must come to an end, here are the two stocks that recently left the dividend aristocrats index: AT&T Inc. (T). Telecom giant AT&T was a long-standing member of the illustrious dividend aristocrats list, having hiked its dividend for over 35 consecutive years.

How is AT&T sustainable?

AT&T believes conservation of natural resources and reducing carbon emissions is critical for building climate resilience throughout our operations and helping to reduce biodiversity loss. AT&T is committed to responsible network installation and maintenance.

How are AT&T dividends paid?

Dividend Payments

Dividends on common stock are normally paid quarterly on the first business day in February, May, August and November to stockholders of record at the close of business on the record date declared by the board of directors.

Which stock is better ATT or Verizon?

AT&T currently trades at a price-to-earnings (P/E) ratio of just 6.2 and a dividend yield of 7.3%. Verizon goes for a P/E ratio of 7 and pays a dividend yield of 7.8%. Keep in mind that both stocks are significantly more expensive on an enterprise-value basis, which factors in debt.

Who has more debt AT&T or Verizon?

AT&T carries $138 billion in debt on its balance sheet, including $11.3 billion that matures in less than a year, and it has $7.5 billion in cash. Verizon, meanwhile, finished its quarter with $147.4 billion in debt, including $13 billion in debt due within the next year.

Is AT&T better than Verizon stock?

Key Points. AT&T and Verizon offer attractive dividend yields, both currently hovering around 7%. AT&T boasts rising free cash flow and multiple quarters of customer growth. Verizon also experienced free-cash-flow growth in 2023, enabling it to raise its dividend for the 17th consecutive year.

Does AT&T stock have a future?

AT&T Stock Forecast

The 15 analysts with 12-month price forecasts for AT&T stock have an average target of 20.17, with a low estimate of 14 and a high estimate of 29. The average target predicts an increase of 13.12% from the current stock price of 17.83.

Is AT&T stock undervalued?

In conclusion, AT&T (NYSE:T) is estimated to be modestly undervalued. Despite its poor financial condition, its profitability is fair.

Where will AT&T stock be in 5 years?

AT&T stock price stood at $17.83

According to the latest long-term forecast, AT&T price will hit $20 by the middle of 2024 and then $25 by the end of 2025. AT&T will rise to $30 within the year of 2026, $35 in 2027, $40 in 2028, $45 in 2030, $50 in 2032 and $55 in 2034.

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