AT&T vs. Verizon in 2026: Which Telecom Dividend Stock Is Actually Worth Owning?

Core Viewpoint - The comparison between AT&T and Verizon highlights the strengths and weaknesses of each telecom company in terms of dividend sustainability, earnings growth, and debt management, ultimately suggesting that while Verizon offers a higher yield, AT&T shows stronger growth potential and a clearer path to deleveraging [1]. Group 1: Verizon - Verizon's current dividend yield is 5.34%, with an annualized dividend of $2.76 per share, reflecting a 28% increase year-to-date [1]. - The company reported impressive Q4 2024 results, with postpaid phone net additions of 568,000, a 26.5% year-over-year increase, and fixed wireless access revenue rising 51.6% to $611 million [1]. - Despite these positives, Verizon's guidance for 2025 adjusted EPS growth is flat at 0% to 3%, and the company carries a total debt of $144 billion, which raises concerns about its financial stability [1]. Group 2: AT&T - AT&T's current dividend yield is 3.83%, with an annualized dividend of $1.11 per share, but the company has shown significant earnings momentum [1]. - The Q4 2025 results exceeded expectations, with adjusted EPS of $0.52 against an estimate of $0.47, and revenue of $33.47 billion, marking a 3.6% year-over-year growth [1]. - AT&T is actively deleveraging, with net debt-to-EBITDA expected to decline to approximately 3x by the end of 2026, and the company has committed to over $45 billion in shareholder returns from 2026 to 2028 [1].