I know AT&T isn’t anyone’s favorite stock. The 2022 dividend cut following the WarnerMedia spin-off left a scar. Many income investors abandoned it and haven’t looked back.
But since then, the story has changed:
🟢 EXCELLENT on DividendQuad | Quality 76, Opportunity 80
- Yield: 4.79%
- P/E: 7.67x
- P/FFO: 4.1x (estimated fair value $56–84 vs. current $23)
- Cash Flow Payout: 20.1% (the dividend is protected)
- FCF Coverage: 2.20x
- Net Debt/EBITDA: 2.7x
The business is no longer the disaster it was 4 years ago. AT&T is now a pure-play telecom company: fiber, 5G, and mobile. The legacy copper business is being phased out. The lead-related lawsuits have been dismissed. The 2024 data breach has been resolved. And the FCC is facilitating the phase-out of copper.
It’s not the most exciting stock in the world. But I’ve been collecting this dividend quarter after quarter for years, and at a P/E of 7.7x with a 4.8% yield covered five times by cash flow, I have no intention of selling it.
