Why AT&T Stock Climbed Today

Core Insights - AT&T's shareholders are set to receive over $45 billion in dividends and stock buybacks in the coming years, reflecting strong financial performance and shareholder returns [1][5] - The company's stock price increased by more than 4% following the announcement of robust subscriber growth metrics [1] Subscriber Growth - In the fourth quarter, AT&T added 421,000 postpaid phone subscribers, 283,000 fiber subscribers, and 221,000 5G fixed wireless home internet customers, indicating strong demand for its services [2] - CEO John Stankey highlighted that investments in spectrum and fiber will enable AT&T to attract more customers across various categories and regions in the U.S. [2] Financial Performance - AT&T's revenue rose by 3.6% year over year to $33.5 billion, while adjusted free cash flow increased by 5% to $4.2 billion [4] - The company has a market capitalization of $163 billion, with a gross margin of 42.7% and a dividend yield of 4.83% [3][4] Future Cash Flow Projections - Management projects free cash flow to exceed $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028, indicating a strong financial outlook [5] - The anticipated cash flow will be utilized for substantial shareholder returns through dividends and stock buybacks [5]