Is AT&T A Good Dividend Stock For 2022 Compared To Peers?

Jan. 31, 2022 9:00 AM ETAT&T Inc. (T), T.PA, T.PC, TBB, TBCWBD92 Comments

Summary

  • AT&T is not only the highest dividend-paying stock across its peer group, but also a top contender across the broader market.
  • Based on the last declared quarterly dividend rate of $0.52 per share, the stock's current annualized dividend yield stands at almost 9%.
  • However, following the impending completion of the WarnerMedia-Discovery transaction in Q2, AT&T will be reducing its dividend pay-out ratio for the first time in more than 25 years.
  • Based on the stock's valuation prospects, as well as the anticipated dividend pay-out structure ex-WarnerMedia, AT&T is expected to generate a dividend yield of about 6% post-deal-close, which is still competitive compared to other dividend-paying stocks.
  • While a high dividend yield could imply higher risks to the investment, AT&T remains an attractive stock pick at current valuations, especially considering the underlying business' inflation-resistant nature, as well as its potential in 5G and fiber broadband in coming years.

AT&T Advises Its Over 200,000 Workforce To Work From Home, As Coronavirus Continues To Spread

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AT&T (NYSE:T) has not only been a longstanding member of the S&P 500 Dividend Aristocrats Club – an exclusive group of companies who have increased their dividends for at least 25 consecutive years – but also the highest

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AT&T Dividend Yield

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AT&T Valuation Analysis

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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