AT&T Stock Analysis: Should You Buy At Current Price Point?
Wednesday, 20 March 2024, 13:15
AT&T Stock Analysis
The stock's 6.5% dividend yield comes with additional upside potential. Telecom giant AT&T (NYSE: T) has seemingly hung around the $20 mark for years. Today, shares are trading hands at $17. The stock has underperformed the S&P 500 due to a bloated balance sheet and lack of earnings growth.
Three Key Points:
- AT&T is still a dividend machine: Despite the dividend cut, the company's cash flow has benefited, enhancing potential for debt reduction.
- The balance sheet is improving: Significant progress has been made in reducing debt and interest expenses, signaling positive financial health.
- Customer acquisition for growth: AT&T's focus on acquiring new customers can drive revenue growth and potentially boost earnings.
Investing in AT&T with its current price point and growth prospects could offer solid long-term returns, especially considering its strong dividend yield and future earnings potential.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.