NEW YORK, June 26, 2026, 15:01 (EDT)
- AT&T Inc. NYSE:T added roughly 0.6% to $22.55 during Friday afternoon. The company’s market cap was around $158.5 billion.
- AT&T’s $1.11 annual common dividend is good for a 4.9% yield at Friday’s close. The company also plans an $8 billion buyback in 2026, about 5.0% of its market cap.
- AT&T’s Q2 free cash flow outlook is $4.0 billion to $4.5 billion, which should cover the expected common dividend for the quarter by around 2.1 to 2.3 times.
AT&T Inc. NYSE:T ticked up Friday while the broader market slipped, but shares are still showing investors want to see cash after years of promises. With the S&P 500 down 0.18% and the Nasdaq down 0.35%, AT&T closed only about 2.5% higher than its 52-week low of $21.99. The stock is still roughly 24% below its 52-week high at $29.79.
AT&T’s cash-return yield stands out. The company declared a quarterly dividend of 27.75 cents a share on June 24, staying steady with previous payouts. The dividend goes to shareholders of record as of July 10, with payment scheduled for Aug. 3. That keeps the annual dividend at $1.11 a share.
The company has about $8 billion set for a 2026 buyback. Altogether, the announced cash-return plan is just shy of 10% of Friday’s market cap, before any share price move. That’s a big percentage for a stock still trading close to its one-year low.
Dividend pressure comes down to free cash flow. AT&T had 6.948 billion common shares out as of April 22, so the quarterly dividend costs about $1.93 billion. The company said on June 8 it still sees second-quarter free cash flow between $4.0 billion and $4.5 billion.
Second-quarter earnings matter for AT&T. Meeting guidance would put free cash flow at a bit over two times the quarterly common dividend. Missing the mark, with the dividend yield near 5%, could raise questions about how much the company can spend on fiber.
AT&T’s April update shed some light on why investors are uneasy. First-quarter free cash flow dropped to $2.5 billion, down from $3.1 billion a year ago. The company linked that to higher capital investment as it moves faster on fiber. AT&T is still sticking with its guidance for more than $18 billion in free cash flow in 2026, $23 billion to $24 billion in capital spending, a $1.11 common dividend and about $8 billion in buybacks.
FCC regulation is also in play. On June 25, the agency proposed rules to curb long processing times and high fees for wireline buildouts, with a 120-day timeline set for application reviews. Benton Foundation AT&T executive vice president for federal regulatory relations Rhonda Johnson called faster permits and lower fees a way to “remove unnecessary hurdles” for broadband projects, adding the company will work with the FCC on the rule changes. AT&T Connects
Competition is another factor. SpaceX NASDAQ:SPCX plans to launch a Starlink mobile service aimed at U.S. consumers, the Financial Times said Friday, which could put it up against Verizon Communications Inc. NYSE:VZ, AT&T and T-Mobile US Inc. NASDAQ:TMUS, according to Reuters. Reuters was not able to immediately confirm the Financial Times story, and SpaceX did not respond to a request for comment.
Wall Street keeps a positive bias. Latest WSJ data points to an average AT&T target of $30.39 and a $31 median. Analysts in the set haven’t issued any sell ratings. The Wall Street Journal The market is pricing in a discount for execution risk, as seen in the difference between those targets and where shares closed Friday.
AT&T will release its second-quarter numbers before the NYSE opens July 22. The company has an earnings call set for 8:30 a.m. ET.
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