Why is AT&T dividend so high? (2024)

Why is AT&T dividend so high?

AT&T has one of the highest dividends in the S&P 500, with a trailing-12-month yield of around 6.7%. Unfortunately, part of the reason the dividend yield is so high is because AT&T's stock price has been falling. Regardless, AT&T's lucrative dividend is appealing to investors seeking consistent income.

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.

Is AT&T's dividend safe?

Since March 31, 2022, AT&T's net debt has declined from $169 billion to $128.9 billion. Having better financial flexibility all but ensures that AT&T's 6.4% yield is safe.

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.

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.

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.

What is AT&T stock outlook for 2024?

For fiscal 2024, AT&T said it expects adjusted earnings of between $2.15 a share to $2.25 a share, below Wall Street estimates of $2.46.

Is AT&T stock worth keeping?

A dirt cheap valuation. AT&T is valued at about $119 billion. Based on the company's guidance, the stock trades at a price-to-free-cash-flow ratio of just over 7. One knock on AT&T as an investment is the company's high debt levels.

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.

What is the safest dividend paying stock?

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.

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.

How to earn $500 a month from AT&T stock?

To figure out how to earn $500 monthly from AT&T dividends, we start with the yearly target of $6,000 ($500 x 12 months). So, an investor would need to own approximately $88,642 worth of AT&T, or 5,405 shares to generate a monthly dividend income of $500.

What is AT&T next dividend date 2024?

AT&T Inc. Historical Common Dividends Data
YearPayment DateRecord Date
202402-01-2401-10-24
202311-01-2310-10-23
08-01-2307-10-23
05-01-2304-10-23
144 more rows

Will ATT increase dividend in 2023?

AT&T said on September 29, 2023 that its board of directors declared a regular quarterly dividend of $0.28 per share ($1.11 annualized). Previously, the company paid $0.28 per share.

What is the future of AT&T stock?

AT&T stock price stood at $17.73

According to the latest long-term forecast, AT&T price will hit $20 by the middle of 2024 and then $30 by the end of 2026. AT&T will rise to $35 within the year of 2027, $40 in 2028, $45 in 2030, $50 in 2033 and $55 in 2035.

How often are AT&T dividends paid?

AT&T Inc. ( T ) pays dividends on a quarterly basis.

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.

Has AT&T ever lowered their dividend?

AT&T (ticker: T) cut its dividend as part of the spinoff—a point of contention for many AT&T shareholders—but the payout remains generous at an annual $1.11 per share.

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.

What will AT&T stock be worth in 5 years?

Long-Term AT&T Stock Price Predictions
YearPredictionChange
2025$ 17.43-2.24%
2026$ 17.04-4.44%
2027$ 16.66-6.58%
2028$ 16.28-8.68%
2 more rows

Where will Verizon be in 5 years?

Long-Term Verizon Communications Stock Price Predictions
YearPredictionChange
2025$ 41.44-1.64%
2026$ 40.76-3.26%
2027$ 40.09-4.84%
2028$ 39.43-6.41%
2 more rows

What is AT&T next every year?

AT&T Next and AT&T Next Every Year℠ take the retail price of your new smartphone and spread it across small monthly payments. Upgrade to a new smartphone in 2 years by trading in your eligible device. Pay off your smartphone in 30 months and enjoy lower monthly payments.

How high can AT&T stock go?

Stock Price Forecast

The 22 analysts offering 12-month price forecasts for AT&T Inc have a median target of 19.00, with a high estimate of 25.00 and a low estimate of 9.00. The median estimate represents a +10.24% increase from the last price of 17.24.

Why is AT&T stock sinking?

Shares of US telecommunications giants like AT&T have been falling since the July 9 report revealed that abandoned lead-sheathed cables that have been contaminating soil and water sources in the US.

Why is AT&T stock so low?

Shares of telecom giant AT&T (T -1.16%) have been stuck in a rut for much of 2023. Slowing subscriber growth, an uncertain economic outlook, mountains of debt, and fear that the company's free cash flow outlook was overly optimistic put downward pressure on the stock.

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