AT&T: The Ultimate Patience Tester

Summary:

  • AT&T is delivering its wireless and fiber broadband strategy, but the capex required is slowing free cash flow growth in 2024.
  • FCF is still sufficient to pay the dividend and cover all debt due in 2024.
  • The company looks able to hit its leverage target in 1H 2025, which, along with lower capex, will finally allow for a dividend raise.

Business: Man died while waiting "on hold." Office phone.

An investor waiting for AT&T to declare a dividend increase

fstop123/iStock via Getty Images

Delivering Fiber Broadband Strategy Takes Time

Watching a stock like AT&T (NYSE:T) go nowhere for several years has tested the patience of many investors. If


Analyst’s Disclosure: I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *