Wall Street loves the original 140-year-old blue-chip stock, which started trading in the new year paying a 4.9% dividend. Wells Fargo named AT&T the best telecom company in 2025, citing double-digit earnings per share growth expected by 2027, driven by the construction of its fiber-to-the-home broadband network. “We believe T is well-positioned to benefit from a renewed focus on becoming a dedicated communications provider,” analyst Eric Luebchow wrote. “T’s long-term guidance provided at its December 2024 investor day was clear,” he said. Its plan to deliver $40B in shareholder returns between 2025 and 2027. AT&T, which was founded in 1885, trades at seven times 2025 EBITDA, which Luebchow called attractive, noting the company. The strong free cash flow forecast points to further share repurchases beyond the $20 billion currently expected. Also on Monday, RBC Capital Markets was optimistic about AT&T’s prospects in 2025 and beyond. Analyst Jonathan Atkin upgraded Dallas AT&T to outperform and said he was more confident in the company’s potential growth and shareholder returns. “Eliminating legacy costs and leveraging fiber investments strengthens our confidence in T’s performance beyond 2027,” Atkin wrote. He expects the company to add more than 500,000 converged homes by 2030. “Retiring” copper wire saves $6 billion. Excluding the 4.9% dividend, AT&T shares are up about 36% in 2024.
Wall Street favors old blue-chip stocks with 5% dividend yields | Real Time Headlines
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