AT&T (T) Stock

AT&T Inc. (NYSE: T) is once again giving back to its shareholders by announcing a quarterly dividend of $0.2775, which will be paid on Monday, February.

T is showing better performance and increasing profits, highlighting the success of its bundling strategy. The management has provided an encouraging forecast for FY2025 and plans to return more money to shareholders starting in the second half of 2025. These factors may have led to higher future estimates and T's rising valuations, as supporters continue to back its growth.

Between the end of 2023 and January 28, AT&T's shares increased by 48%. While the company has been providing a very high dividend yield, it has not changed its payout since it was lowered in 2022.

The short-term technical indicators are very positive, as the chart, moving averages, and other signals suggest a strong outlook. However, there are some longer-term warning signs in the MACD and RSI, so investors should be careful when putting money into AT&T. The latest earnings report was solid, with revenue growth remaining steady, but earnings per share (EPS) growth was notably strong.

AT&T's earnings for the fourth quarter showed good results and indicated strong cash flow in the future. The company intends to give back more than $40 billion to its shareholders over the next three years, which means an annual yield of nearly 8%. When factoring in debt reduction, I anticipate the total shareholder yield (TSY) to be about 13%.

On Monday, shares of telecom giant AT&T (T 1.08%) rose significantly for a good reason. The company announced results that exceeded expectations, confirmed its outlook for 2025, and provided updates on its efforts to reduce debt and plans to resume share buybacks later this year.

AT&T announced impressive earnings for the fourth quarter, with good free cash flow thanks to increases in broadband and subscriber numbers, surpassing expectations for both revenue and profit. The company also lowered its net debt by $8.8 billion in the fiscal year 2024, marking a 7% decrease compared to the previous year. Additionally, AT&T's fiber division is performing exceptionally well, experiencing double-digit growth in revenue.

AT&T's earnings for the fourth quarter exceeded predictions. The increase in stock value after the spinoff shows that management is gaining trust. While they are managing the growing parts of the business effectively, there is still a risk with the declining areas, but focusing on growth should help ease worries about the shrinking segments.

AT&T Inc. shared impressive earnings for the fourth quarter, surpassing expectations, and revealed plans to invest in AI while returning over $40 billion to its shareholders. The company demonstrated good performance, especially in mobility and broadband revenues, even though overall revenue growth was limited. Looking ahead to 2025, AT&T anticipates modest revenue growth, possible margin improvements, and significant returns for shareholders, although its stock is currently considered fairly to slightly overvalued.