Why should people invest in AT&T?
Second, AT&T offers a generous dividend yield of 6.66%, which is much higher than the average yield of short-term government bonds (4.8%), telecom stocks (4.65%), and S&P 500 stocks (1.84%). This means that AT&T can provide you with a steady income stream that beats most alternatives.
Deciding on AT&T stock
AT&T had a solid 2023, which could prove to be the turning point in its transition back to a purely telecommunications business. Its debt levels are dropping, free cash flow is rising, and its consistent customer growth has enabled the company to increase revenue.
AT&T is facing challenges and may not grow briskly, but investors seeking income might want to consider it: The stock recently sported a hefty dividend yield of 6.6%. Burdened with long-term debt, AT&T cut its dividend nearly in half in 2022 and has kept it steady since then.
2024 Outlook
For the full year, AT&T expects: Wireless service revenue growth in the 3% range. Broadband revenue growth of 7%+. Adjusted EBITDA* growth in the 3% range.
Over the past five years, from 2019 to 2023, AT&T invested $145 billion+ in its wireless and wireline networks, including capital investments and acquisitions of wireless spectrum2.
AT&T currently has an average brokerage recommendation (ABR) of 1.80 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 20 brokerage firms.
AT&T Stock Forecast
The 16 analysts with 12-month price forecasts for AT&T stock have an average target of 20.22, with a low estimate of 14 and a high estimate of 29. The average target predicts an increase of 17.83% from the current stock price of 17.16.
Consider AT&T stock
Due to improving business conditions, the low valuation makes AT&T a compelling buy. Thanks to a rising market share and the AI-driven need for AT&T's networks, the company and its stock should move higher in the long term.
AT&T annual gross profit for 2023 was $72.305B, a 3.45% increase from 2022. AT&T annual gross profit for 2022 was $69.893B, a 5.08% decline from 2021. AT&T annual gross profit for 2021 was $73.631B, a 4.87% decline from 2020.
In the third quarter of 2023, AT&T reported revenue of $30.4 billion, a 1% increase compared to the same period a year prior. This growth is partly attributed to the company's expanding customer base, which has doubled to over 8 million subscribers in less than four years.
Why is AT&T stock going up?
In its most recent quarter, AT&T delivered, generating solid revenue growth, robust free cash flow, and notable subscriber gains. Perhaps most importantly, the company achieved its goal of $6 billion in run-rate cost savings and is making progress toward an incremental $2 billion cost savings by 2026.
Key Takeaways: AT&T continues to execute its sustainable long-term growth strategy. The company is on track to generate full-year free cash flow of about $16.5 billion, and achieve its goal of 2.5x net-debt to adjusted EBITDA in the first half of 2025.
Telecom giant AT&T spent 2023 investing in the areas it's seeing the most profitable growth, namely 5G and AT&T Fiber. That strategy is leading to wins over the competition and won't change in 2024, CEO John Stankey said during the carrier's fourth-quarter 2023 earnings call on Wednesday.
Weaknesses. Decline in Traditional Services: Despite its strengths, AT&T Inc (NYSE:T) faces challenges with its traditional wireline services. The company acknowledges a secular decline in these services as customers transition to wireless, VoIP, or internet-based offerings from competitors.
The top shareholders of AT&T are Randall L. Stephenson, John J. Stephens, William A. Blase, Vanguard Group Inc., BlackRock Inc.
- Step 1: Find a good online broker. ...
- Step 2: Open your brokerage account. ...
- Step 3: Deposit money to your account. ...
- Step 4: Buy the AT&T share. ...
- Step 5: Review your AT&T position regularly.
AT&T Communications provides more than 100 million U.S. consumers with communications experiences across mobile and broadband. It uses a variety of platforms to provide broadband connectivity, including higher speeds made possible by our fiber network expansion and wireless network enhancements.
How much is AT&T's dividend? T pays a dividend of $0.28 per share. T's annual dividend yield is 6.53%. When is AT&T ex-dividend date?
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.
Main takeaways: AT&T Stock Forecast 2024-2030
Most analysts see AT&T stock trading in a range of $18-28 per share through 2024 as competitive pressures persist. Forecasts from Gov Capital predict AT&T stock will hit $32 by mid-2025, driven by 5G network expansion, fiber/HBO Max growth, and debt reduction.
Why is AT&T stock so low?
Shares of telecom giant AT&T (T 0.23%) 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.
Telecom giant AT&T (NYSE: T) has successfully kept its wireless business growing by attracting hundreds of thousands of new subscribers each quarter. The fiber internet business is also performing well as the company expands its network.
As of 2023, AT&T was ranked 13th on the Fortune 500 rankings of the largest United States corporations, with revenues of $120.7 billion. AT&T Inc. U.S.
The main strength of AT&T was the lead it had in telephones due to Bell's innovation. This would become the base of the Bell System, a monopolistic system for decades to follow. The telephone was the invention of Alexander Graham Bell. He founded several companies, one of which was AT&T.
T – AT&T (T) is currently struggling with its debt burden and slowing wireless subscriber growth.
