At&t Inc stock dividend – AT&T Offers Attractive 6.7% Dividend Yield and Potential for Re-Rating
December 28, 2023
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As one of the most well-established communications companies in the world, AT&T ($NYSE:T) has an attractive 6.7% dividend yield and potential for a re-rating. The current market environment is ripe for AT&T to benefit from a re-rating. With the company’s cost-cutting initiatives, AT&T’s growth prospects have improved considerably. This is reflected in the company’s share price performance, which has seen a significant increase since the beginning of 2021.
Furthermore, AT&T’s dividend yield of 6.7% is one of the highest among its peers, giving investors a compelling reason to invest in the company. In addition to experiencing a rising share price, AT&T is also well positioned to benefit from the current tailwinds in the telecommunications sector. For those looking for a reliable income stream, AT&T’s robust dividend policy provides a great opportunity to capitalize on the current market conditions.
Dividends – At&t Inc stock dividend
Over the past 3 years, AT&T Inc. has issued an annual dividend per share of 1.11, 1.11, and 2.08 USD respectively. The dividend yields from 2021 to 2023 are estimated to be 6.43%, 7.65%, and 9.38%. For those investors who are keen in dividend stocks, AT&T Inc. presents a good opportunity for consideration.
The consistent dividend yields from the past few years indicate that the company is committed to bring value to their investors. Furthermore, with potential for re-rating, AT&T Inc. is well-positioned for long-term investors to reap rewards in the future.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for At&t Inc. More…
| Total Revenues | Net Income | Net Margin |
| 121.75k | -11.51k | 8.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for At&t Inc. More…
| Operations | Investing | Financing |
| 37.25k | -17.61k | -14.47k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for At&t Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 406.7k | 286.87k | 14.5 |
Key Ratios Snapshot
Some of the financial key ratios for At&t Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -11.0% | -2.6% | 0.2% |
| FCF Margin | ROE | ROA |
| 16.2% | 0.2% | 0.0% |
Analysis
At GoodWhale, we have conducted an analysis of AT&T INC‘s wellbeing. Based on our Star Chart, we have classified the company as a ‘cow’ – a type of company that has a proven track record of paying out consistent and sustainable dividends. This makes AT&T INC an attractive option for investors looking for stability and an income source. After further evaluation, our health score for AT&T INC is 6/10. This indicates that the company is in an intermediate state of health considering its cashflows and debt, and it should be able to safely ride out any crisis without the risk of bankruptcy. We have identified that AT&T INC is strong in the areas of asset, dividend, and profitability, but weak in terms of growth. In light of this, it is important to note that investors should have realistic expectations with regards to potential returns. More…
Peers
AT&T Inc is one of the world’s largest telecommunications companies, with a wide range of products and services including wireless, broadband, and television. It competes primarily with Verizon Communications Inc, America Movil SAB de CV, and T-Mobile US Inc. All three companies are leaders in their respective markets and offer a variety of products and services to their customers.
– Verizon Communications Inc ($NYSE:VZ)
Verizon Communications Inc. has a market capitalization of 155.68 billion as of 2022 and a return on equity of 22.51%. The company is a provider of communications, information and entertainment products and services to consumers, businesses and governmental agencies. Verizon operates in four business segments: Wireless, Residential, Business and Verizon Media Group.
– America Movil SAB de CV ($OTCPK:AMXVF)
America Movil is a Mexican telecommunications company that offers wireless voice and data services, as well as fixed-line and pay television, in Mexico and throughout Latin America. The company has a market cap of 52.63B as of 2022 and a Return on Equity of 26.76%. America Movil is one of the largest mobile network operators in the world, with over 260 million subscribers.
– T-Mobile US Inc ($NASDAQ:TMUS)
T-Mobile US Inc is a wireless carrier operating in the United States. The company has a market cap of 170.75 billion as of 2022 and a return on equity of 4.35%. T-Mobile US Inc offers wireless voice, messaging, and data services to customers in the United States. The company operates a nationwide 4G LTE network covering more than 320 million people.
Summary
AT&T Inc. is an attractive investment opportunity due to its hefty 6.7% dividend yield and potential for re-rating. AT&T’s stock appears to be undervalued compared to its peers and recent performance has been encouraging. The company recently launched a streaming platform, HBO Max, and has seen strong customer demand, adding to its potential for growth.
AT&T is well-positioned to benefit from the continued growth of e-commerce services and changing consumer habits. Its diverse portfolio of services, including wireless, internet, and video services, gives it a competitive edge for future market growth.
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