📈📊 AT&T and dividends: what is the current situation and what can we expect?
AT&T Inc. $T is one of the world's largest telecommunications companies, providing a wide range of mobile communications, fixed-line, broadband and digital television services. The company is known for its innovative approach to technology and commitment to providing quality service to millions of customers around the world. Recently,it has focused on developing its 5G network and digitizing its services, which has helped it maintain a significant position in the global market.
AT&T
TFor many investors, dividends are the main reason they hold AT&Tstock in their portfolio. The dividend yield seems attractive, but long-term shareholders are disappointed, with the stock price down more than 40 % lower than it was a decade ago.
Recently, however, the situation has begun to improve slightly. AT&Tstock has rebounded from its 2023 lows as management has focused on its core telecom business. This strategic move has led to steady growth in telephone subscribers, and the stock has since risen by more than 30 %.
💰AT&T currently offers a dividend yield 6,2 % and pays shareholders $0.2775 per share quarterly . In 2023, the company paid out a total of $8.1 billion in dividends , but that number is likely to change as AT&T continues to buy back its own stock. In the first quarter of this year, the number of diluted shares outstanding fell from 7.47 million to 7.19 million, and that trend is expected to continue. AT&T is estimated to pay out $7.98 billion in dividends in 2024.
🔍 Historically AT&T has increased its dividend every year, which ended in 2022, when it spun off a division WarnerMedia and cut the dividend almost in half. Since then, it has paid a constant quarterly dividend of $0.2775 per share. While there is no indication that the dividend will increase yet, the company's growing free cash flow could convince management to increase the payout.
If the company decides to return to dividend growth, we can expect a positive market reaction and a rise in the stock price 🚀.
AT&T still offers an attractive dividend yield, however, and although the stock price has fallen significantly in recent years, current signs of stabilization and growth bode well for a better future. For dividend-focused investors, it remains AT&T an interesting opportunity to watch.
Personally, I'm currently focused on stable dividend titles, and AT&T in particular strikes me as an interesting company.
What is your view on this company and the telecom sector in general?
I used to think it was a great investment, but I wouldn't include their stock in my portfolio nowadays. I don't see any growth or innovation there, and there are plenty of other companies that I think offer that dividend.