One stock stands out over the other on this important metric.More often than not, investors interested in Verizon Communications (VZ -0.89%) and AT&T (T -1.85%) are generally most interested in their dividends. Neither company is in strong growth mode, and both stocks carry relatively high yields.So, let's look at which stock might best be suited for income-oriented investors.Current dividendsBoth Verizon and AT&T have similar dividend yields. Verizon currently pays out a quarterly per-share dividend of $0. ...

Core Viewpoint - AT&T has faced significant challenges over the past decade due to shifts in technology usage, leading to substantial investments that did not yield expected returns, resulting in shareholder dissatisfaction and concerns over debt management [1][2]. Group 1: Company Challenges and Market Position - AT&T's stock has dropped approximately 8% in the past year, significantly underperforming compared to the S&P 500's 33% increase, yet it still holds potential for long-term investors [2]. - The company is focusing on enhancing its network quality, leveraging its extensive wireless network and fiber infrastructure to meet increasing demand for connectivity [2]. - AT&T's commitment to adopting new technologies such as 5G and Open Radio Access Networks indicates its readiness to adapt to market changes [2]. Group 2: Debt Assessment and Management - As of Q4 2023, AT&T's total debt stands at $143.3 billion, with a focus on understanding its debt management in the context of rising interest rates and inflation [4][3]. - The company has successfully reduced its total debt from $171 billion in Q3 2021 to $143.3 billion, providing more breathing room in the near term [9]. - Approximately 23% of AT&T's fixed long-term debt is set to mature within the next five years, with a total of 61% maturing within the next 20 years [5]. Group 3: Financial Projections and Scenarios - In the BASE scenario, AT&T is projected to generate around $16.8 billion in free cash flow (FCF) in 2024, which would cover its debt obligations comfortably [10]. - The net debt to EBITDA multiple is expected to decrease from 3.3 in 2023 to as low as 2.3 by the end of 2028, indicating improved debt management [11][12]. - Under the OPTIMISTIC scenario, AT&T could achieve a net debt to EBITDA multiple as low as 1.9, significantly alleviating market concerns regarding its debt servicing capabilities [16][18]. Group 4: Investor Sentiment and Future Outlook - The current market pessimism towards AT&T is viewed as misplaced, as the company is expected to maintain its dividend while gradually reducing leverage [18]. - AT&T's stock offers an attractive valuation proposition with a dividend yield of 6.6%, and its fiscal year-end 2023 FCF dividend payout ratio was below 50% [18]. - Long-term investors are likely to benefit from AT&T's prudent financial management and strategic initiatives, despite ongoing uncertainties [18].

AT&T has begun notifying U.S. state authorities and regulators of a security incident after confirming that millions of customer records posted online last month were authentic.In a legally required filing with Maine’s attorney general’s office, the U.S. telco giant said it sent out letters notifying more than 51 million people that their personal information was compromised in the data breach, including around 90,000 individuals in Maine.AT&T — the largest telco in the United States — said that the breache ...

Should AT&T investors brace for a dividend cut?If you come across a dividend stock with a yield exceeding 5%, it wouldn't be out of line to question whether its dividend is sustainable. And the higher that yield is, the greater the doubts that you have come across a safe income stock. It's this truism that likely goes some way toward explaining why investors remain hesitant about AT&T (T -0.43%) stock. The stock itself trades down about 14% over the past 12 months. That drop in price has helped push its div ...

We've also got a look at 3M's spinoff, gold prices, and the beef industry.In this podcast, Motley Fool analyst Jason Moser and host Deidre Woollard discuss:Another big stumble for AT&T.Why 3M's spinoff might be worth watching.What's driving gold prices.Motley Fool analyst Asit Sharma shares a stock he just bought and Motley Fool host Ricky Mulvey talks with Erin Karney, executive vice president of the Colorado Cattlemen's Association.To catch full episodes of all The Motley Fool's free podcasts, check out o ...

Joe Hendrickson I last wrote about AT&T (NYSE:T) back in 2014, and I suggested buying a pullback in the stock when it was trading for about $24. The stock ended up going to around $33 in 2016, and I sold my shares. Now I see another opportunity to buy this stock. This company has been dealing with many challenges over the past few years and until fairly recently, the stock has been in a major downtrend. However, I now believe it is once again an ideal time to be accumulating this stock on pullbacks. One maj ...

In a bid to bridge the digital divide in the United States, AT&T Inc. (T) has announced an additional $3 billion investment by 2030, bringing the tally to $5 billion since 2021. This commitment underscores AT&T's dedication to providing affordable, high-speed Internet access to millions of Americans, with a goal to help 25 million people get connected throughout the decade.A significant chunk of Americans reportedly still lack access to wired or fixed wireless broadband, while several others struggle with d ...

DALLAS, April 4, 2024 /PRNewswire/ -- Decade-long commitment of internet services and digital literacy resources aims to reach 25 million people to help close the digital divide Key Takeaways: AT&T commits an additional $3 billion, for a total of $5 billion since 2021, to narrow the digital divide AT&T aims to help 25 million people get and stay connected by 2030 The company’s additional $3 billion commitment will address the main barriers to connectivity – affordability and adoption – for those who need i ...

Auris A "show me" stock AT&T Inc. (NYSE:T) has largely become a "show me" stock recently, in my view. That is, I think investors are saying "show me" the results before they're convinced to buy in. Of course, there are good reasons. It's difficult to argue against the attractiveness of the company's stock price (a sector leader trading at 7.9x FWD P/E). However, there are indeed many uncertainties about the company's future performance. I cannot blame anyone for deciding to wait and see if the company can d ...

A major hacking incident disclosed over the weekend led to a minor sell-off in AT&T (T -0.57%) stock as the trading week kicked off on Monday. The telecom giant's shares dipped by 0.6% on the day, which was a steeper fall than the bellwether S&P 500 index's 0.2% slide.Large data set found on the dark webThe previous Saturday, AT&T revealed that data fields specific to the company were found in a data set released on the dark web. This occurred roughly two weeks previously and, according to a preliminary ana ...