AT&T: The Preferred Shares Offer A 50% Higher Dividend Yield

Apr. 20, 2025 10:40 AM ETAT&T Inc. (T) Stock, T.PR.A StockT, T.PR.A89 Comments

Summary

  • AT&T's preferred shares offer a secure income stream with a 6.35% yield, making them attractive for conservative investors seeking stability over capital gains.
  • The company's strong financials, with a net profit of $12.25B and minimal preferred dividend obligations, ensure robust dividend coverage.
  • Series A preferred shares, trading below $20, present a potential 25% capital gain if called, though AT&T is unlikely to rush this.
  • Preferred shares yield 50% more than common shares and may appreciate if market interest rates decline, enhancing their appeal.
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Introduction

I don’t think AT&T (T) needs a lengthy introduction as the company is one of the leading telecom and broadband providers in the US. In this article, I’d like to have a look at the more senior securities issued

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of T.PR.A 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.

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