AT&T: Market Sentiment Seems To Finally Be Turning, And A Decade Of Underperformance Could Vanish

Summary

• AT&T just delivered a strong Q3 with a beat and raise, as their EPS guidance has now exceeded the top of its previous range.
• AT&T continues to reduce its debt load, and eliminated an additional $2.48 billion between its long-term and debt maturing in 1-year.
• AT&T was crystal clear on the conference call that the dividend is not in danger, and the FCF remaining after the dividend obligation is more than enough to service its debt.

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Putting the dividend aside, AT&T (NYSE:T) has been a disappointment as shares have severely underperformed the S&P 500. For shareholders of T, this has been a lost decade as shares have declined by -34.5% while just investing in an S&P 500 index

Analyst’s Disclosure:I/we have a beneficial long position in the shares of T, VZ, KO 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.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters.