3 Key Factors That Make AT&T (T) a Top Pick for 2025
AT&T Inc. (NYSE:T) is one of the Best Stocks to Buy for Dividends.
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In recent years, the company has moved away from non-core businesses such as DirecTV and Time Warner, refocusing on its core operations in wireless and fiber connectivity. This renewed focus allows the company to better meet growing customer expectations for faster and more dependable service. As a result, profit margins have improved, cash flow has shown consistent growth, and the company has reduced its debt by $45 billion since John Stankey became CEO in July 2020.
Secondly, AT&T Inc. (NYSE:T) typically competes in a limited field, mainly with Verizon and T-Mobile in wireless, and smaller regional players in cable. With few rivals able to match its scale, the company benefits from long-term stability. Its continued investment in fiber strengthens this advantage. As telecom remains essential to daily life, AT&T is well-positioned for lasting success through 2030 and beyond.
In addition, AT&T Inc. (NYSE:T) maintains a solid cash position, providing enough support for its dividend payments. Over the past twelve months, the company generated $40.2 billion in operating cash flow and $14.4 billion in levered free cash flow. Although investors may hope for higher free cash flow to cover capital spending, reduce debt, or raise dividends, the current levels are sufficient to maintain the company's existing dividend.
AT&T Inc. (NYSE:T) currently offers a quarterly dividend of $0.2775 per share and has a dividend yield of 3.98%, as of June 25.
While we acknowledge the potential of T as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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