A solid dividend, growing free cash flow, and ample share buybacks make AT&T stock a buy.2025 was the year of artificial intelligence , with AI-related stocks booming. However, there's a real risk that the AI industry is careening toward a reckoning as excessive debt-fueled spending on infrastructure raises questions about a potential bubble. AI stocks could still be big winners in 2026, but there are no guarantees.For investors seeking a safer bet, a high-quality dividend stock that's not tied to the AI bo ...

Core Insights - AT&T, Inc. is collaborating with AST Spacemobile to enhance satellite connectivity, targeting underserved rural and remote areas in the U.S. where traditional network deployment is challenging [1][9] - ASTS has launched Bluebird 6, the largest commercial communications satellite in low earth orbit, and AT&T has activated its fourth satellite ground gateway to connect satellites with its core network [2][9] - AT&T plans to initiate beta satellite service for select customers and FirstNet users in the first half of 2026, which will improve connectivity for public safety operations [2][3] Company Strategy - The partnership with ASTS aims to overcome limitations of terrestrial infrastructure, particularly in sparsely populated regions [1] - FirstNet, AT&T's public safety network, is currently testing ASTS satellite services with various public safety agencies, which could enhance services for first responders in remote areas [3][9] Competitive Landscape - AT&T faces competition from T-Mobile, which is collaborating with Starlink for its direct-to-cell services and has begun beta testing in 2024 [4] - Verizon has also partnered with ASTS to expand its SATCOM capabilities, utilizing its low band spectrum to enhance coverage in remote areas, posing a challenge to AT&T's initiatives [5] Financial Performance - AT&T's stock has increased by 9.8% over the past year, contrasting with a 1.7% decline in the industry [8] - The company trades at a forward price-to-sales ratio of 11, which is below the industry average of 11.86 [10] - Earnings estimates for 2025 have risen by 0.5% to $2.06, while estimates for 2026 remain unchanged [11]

Core Viewpoint - AT&T Inc. is a major telecommunications and technology services company facing challenges with revenue decline and competition, but it has been recognized for its potential upside by analysts [1][5][6]. Financial Performance - Analysts expect AT&T to report a fiscal fourth-quarter profit of $0.47 per share, a decrease of 13% from $0.54 per share in the same quarter last year [2]. - For the current year, the expected EPS is $2.06, down 8.9% from $2.26 in fiscal 2024, but projected to rise 9.2% annually to $2.25 in fiscal 2026 [3]. Stock Performance - AT&T shares have increased by 7.4% over the past year, underperforming compared to the S&P 500 Index's 14.8% gains and the Communication Services Select Sector SPDR ETF's 19.1% increase [4]. - The company has experienced a five-year revenue decline averaging 5.6% annually, contributing to concerns about its growth and business quality [5]. Analyst Ratings - JPMorgan Chase & Co. has named AT&T as the only telecommunications stock on its 2026 list of 47 Top Picks, assigning it an "Overweight" rating with a price target of $33, indicating a potential upside of approximately 35% [6]. - The stock offers a forward dividend yield of about 4.5%, appealing to income-focused investors despite recent volatility [6].

Group 1 - AT&T Inc. is considered one of the best telecom stocks to invest in, with Goldman Sachs reducing its price target to $29 from $33 while maintaining a Buy rating [1] - Goldman Sachs projects an 8% free cash flow CAGR for AT&T through 2029, driven by Mobility EBITDA growth, increasing fiber transmissions, and improved Business Wireline trends [1] - The company's capital expenditure leadership and expanding fiber footprint, potentially enhanced by the Lumen Mass Markets acquisition, are expected to provide convergence benefits and prepare the network for AI-driven traffic [2] Group 2 - Wolfe Research downgraded AT&T to Peer Perform from Outperform, citing a "wait and see" approach due to increased near-term risks from evolving market conditions [3] - Wolfe Research anticipates that pricing and promotional adjustments may negatively affect postpaid phone ARPU growth, projecting only a 0.3% year-over-year increase in 2026, along with potential impacts on subscriber growth [3] - AT&T provides a wide range of wireless communication services and data solutions to various customer segments, including corporations, government entities, wholesale customers, and individual consumers [4]

Core Viewpoint - JPMorgan has included AT&T in its list of 47 top stock picks for 2026, indicating a strong belief in the company's potential for outsized returns in the coming year [1] Company Overview - AT&T is one of the largest telecommunications providers in the U.S., offering wireless, broadband, and fiber-optic services to over 100 million customers [3] - The company is headquartered in Dallas, Texas, and operates the largest wireless network in the nation while expanding its fiber-to-the-home services [3] Stock Performance - AT&T's stock has risen 8% over the past year, but it has fallen 18% from its September high of $29.79 per share [2][4] - The stock currently has a forward dividend yield of approximately 4.5%, making it one of the highest-yielding large-cap stocks in the market [2] Analyst Rating and Price Target - JPMorgan has assigned AT&T an "Overweight" rating with a one-year price target of $33 per share, suggesting a potential upside of about 35% from current trading levels [2][7] Market Challenges - The recent decline in AT&T's stock has raised concerns among investors, with factors such as increased promotional activity in the wireless industry affecting average revenue per user (ARPU) and worries about subscriber churn amid economic uncertainty [5] - Broader market trends have also seen a rotation away from high-yield dividend stocks due to elevated interest rates [5] Operational Strength - Despite market challenges, AT&T has shown operational resilience, generating consistent free cash flow and advancing its strategic focus on higher-margin fiber and 5G services [6] - The company has been gaining market share in the postpaid wireless segment through improved customer experience and network quality, as highlighted by JPMorgan analyst Sebastiano Petti [7]

Core Viewpoint - AT&T Inc. is currently viewed as a strong investment opportunity due to its expected growth in free cash flow and share repurchases, despite mixed analyst ratings and price target adjustments from major financial institutions [1][2][3]. Group 1: Analyst Ratings and Price Targets - Goldman Sachs has lowered its price target for AT&T from $33 to $29 while maintaining a Buy rating, anticipating an 8% CAGR in free cash flow through 2029 driven by strong Mobility results and fiber network expansion [1]. - Wolfe Research downgraded AT&T to Peer Perform from Outperform without a specific price target, reflecting a broader downgrade of the telecom and cable sector to Market Weight due to declining KPIs [2]. - Morgan Stanley reduced its price target for AT&T from $32 to $30 but kept an Overweight rating, highlighting a positive outlook for the US wireless market and AT&T's fiber expansion as a competitive advantage [3]. Group 2: Company Performance and Strategy - AT&T is focusing on convergence and significant investments to build a network capable of meeting future AI demands while improving shareholder returns [1]. - The company operates through two segments: Communications and Latin America, indicating a diversified business model [4].

Core Insights - AT&T Inc. partners with Sovato to enhance healthcare access by integrating digital health tools with robust connectivity, aiming to improve care delivery in remote areas [1][9] Group 1: Partnership and Technology - The collaboration allows AT&T to transition from a connectivity provider to a significant technology partner in the healthcare sector [1] - Sovato plans to utilize AT&T's extensive network infrastructure to facilitate remote healthcare services, addressing the shortage of healthcare professionals in rural areas [2] - AT&T Business offers secure connectivity solutions, including 5G and cloud services, which are essential for telehealth and remote patient monitoring [3] Group 2: Impact on Healthcare Delivery - The partnership aims to enhance healthcare efficiency and cost management by improving patient data management and reducing long-term healthcare expenses for employers and insurers [5] - AT&T's reliable performance in remote procedures minimizes downtime and ensures patient safety, enabling Sovato to expand its healthcare solutions rapidly [4] Group 3: Competitive Landscape - AT&T faces competition from Verizon and T-Mobile, both of which are also enhancing their digital health offerings through advanced connectivity solutions [6][7] - Verizon is focusing on using 5G and cloud services to support telehealth and remote patient monitoring, while T-Mobile collaborates with digital health providers to improve access for underserved patients [6][7] Group 4: Financial Performance and Estimates - AT&T's stock has increased by 6.5% over the past year, contrasting with a 5.1% decline in the industry [8] - The company trades at a forward price-to-sales ratio of 1.37, which is lower than the industry average of 1.78 [10] - Earnings estimates for 2025 and 2026 have both risen by 0.5%, now projected at $2.06 and $2.25 respectively [11]

Group 1 - Citigroup has lowered the target price for AT&T from $32 to $29 while maintaining a "Buy" rating [1]

Core Viewpoint - The article compares AT&T and Verizon Communications as high-yield dividend stocks, highlighting that while both are value stocks with solid dividends, Verizon is positioned as the better long-term investment due to its growth potential and stability [1]. Company Performance - AT&T's stock has increased by nearly 7% year-to-date as of December 17, 2025, while Verizon's stock has only risen by 2.23% in the same period [4]. - Over the past five years, AT&T's stock has appreciated by almost 9%, contrasting with Verizon's decline of more than 31% [4]. Financial Metrics - Verizon's current market capitalization is $168 billion, with a dividend yield of 6.84% and a gross margin of 46.08% [5][6]. - AT&T's market capitalization stands at $171 billion, with a dividend yield of 4.60% and a gross margin of 42.70% [7][6]. Dividend Stability - Verizon has a more reliable dividend, currently at $0.69 per quarter, and has increased its dividend for 19 consecutive years [6]. - In contrast, AT&T cut its dividend in 2022 and has not raised it since [6]. Competitive Position - Verizon is recognized for its superior balance sheet and higher revenue, along with being a leader in 5G network reliability [6][8]. - Verizon's focus on subscriber growth and fewer distractions positions it favorably against intense competition [9].

Core Insights - AT&T is being closely monitored, with a particular interest in its preferred shares and baby bonds, which are becoming increasingly attractive for investors [1] Group 1: Investment Focus - The Investment Doctor emphasizes a portfolio that includes a mix of dividend and growth stocks, targeting a 5-7 year investment horizon [1] - The investment group European Small Cap Ideas provides exclusive access to actionable research on appealing investment opportunities in Europe, focusing on high-quality small-cap ideas [1] - The group features two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]