Is AT&T Stock a Buy?

Core Viewpoint - AT&T is viewed as a stable investment option in an unstable market, with a significant stock rally of 60% over the past year compared to a 6% rise in the S&P 500 [1] Group 1: Company Restructuring and Financial Performance - AT&T divested from low-margin and unprofitable media assets like DirecTV and Time Warner, allowing it to focus on its core 5G wireless and fiber broadband businesses while reducing debt [2] - In 2023, AT&T added 1.7 million net postpaid phone subscribers and 1.1 million net fiber subscribers, with free cash flow (FCF) increasing by 19% to $16.8 billion, covering$8.1 billion in dividends [3] - For 2024, AT&T expects to add 1.7 million net postpaid phone subscribers and 1 million net fiber subscribers, with FCF growing 5% to $17.6 billion, comfortably covering$8.2 billion in dividends [3] Group 2: Market Position and Future Outlook - AT&T is considered a safe haven stock amid inflation and high interest rates, with a current dividend yield of 3.9% [4] - For 2025, AT&T anticipates mobility service revenue growth at the higher end of 2% to 3%, consumer fiber broadband revenue growth in the mid-teens, and consolidated service revenue growth in low single digits [5] - The company expects to generate over $16 billion in free cash flow and adjusted EPS between$1.97 to $2.07, with adjusted EBITDA projected to grow by at least 3$314.7 billion [8] - AT&T is trading at 6.9 times this year's adjusted EBITDA, which is competitive compared to Verizon's 6.5 times, despite Verizon offering a higher dividend yield of 6% [8] Group 4: Investment Consideration - AT&T is seen as a worthy investment due to its insulation from tariffs, attractive dividends, and low valuations, making it a safe option for income generation [9]