NEW YORK, August 1, 2026, 17:07 EDT
- AT&T ended Friday at $23.25, posting a 3.6% decline over the week. The S&P 500 rose 1.05%.
- The annualized dividend yield stood at 4.77%, surpassing the 10-year Treasury yield by just three basis points.
AT&T Inc. NYSE:T closed the week at $23.25, falling 3.6%. The stock’s annualized dividend yield was just three basis points above the yield on the 10-year Treasury.
The headline premium for assuming equity risk is slim. Treasury payments are guaranteed by contract if the bond is held until maturity. AT&T’s dividend, by contrast, is paid at the company’s discretion.
The U.S. cash markets did not operate Saturday. Activity will restart on Monday, August 3.
Friday’s earnings comparison highlights AT&T’s shrinking margin.
| Income asset | Annualized cash payout | Friday price | Indicated yield |
|---|---|---|---|
| AT&T | $1.11 | $23.25 | 4.77% AT&T About |
| Verizon Communications Inc. NYSE:VZ | $2.83 | $46.81 | 6.05% Verizon |
| T-Mobile US Inc. NASDAQ:TMUS | $4.08 | $172.71 | 2.36% T-Mobile Investor Relations |
| 10-year U.S. Treasury | — | — | 4.743% The Wall Street Journal |
Stock yields are calculated by annualizing the most recent quarterly or current dividend rate. There is no guarantee that future dividends will be paid.
AT&T finalized its acquisition of $23 billion in spectrum from EchoStar Corp. NASDAQ:ECHO on Tuesday. The deal grants AT&T around 50 MHz of licenses spanning nearly all U.S. markets.
The agreement increases low-band reach and improves mid-band capacity. It further strengthens the balance-sheet requirements. AT&T financed the acquisition through available cash and additional borrowing.
Management’s initial outlook estimates net leverage at around three times adjusted EBITDA, with a goal to reduce it to 2.5 times over approximately three years. AT&T does not anticipate any significant impact on earnings or cash flow for 24 months and projects accretion by the third year.
The acquisition is significant compared to AT&T’s existing financial resources.
| AT&T metric | Value | $23 billion deal as share of metric |
|---|---|---|
| 2026 minimum free cash flow forecast | $18 billion | 1.28 times the minimum AT&T About |
| Net debt in second quarter | $126.4 billion | 18.2% AT&T About |
| 2026 planned share repurchases | About $10 billion | 2.3 times AT&T About |
| Market capitalization on Friday | $161.5 billion | 14.2% |
Preliminary company guidance provides figures for free-cash-flow and buybacks.
The stock ended Tuesday at $24.66. By Friday, it was down 5.7% from that point. The drop came after the deal was finalized, but no causal link is implied.
| Security | Friday close | Weekly change |
|---|---|---|
| AT&T | $23.25 | down 3.6% The Wall Street Journal |
| Verizon | $46.81 | up 0.9% The Wall Street Journal |
| T-Mobile US | $172.71 | fell 4.1% The Wall Street Journal |
| S&P 500 | 7,489.72 | added 1.05% Reuters |
AT&T posted its weekly loss even as second-quarter results improved. The company reported an increase of 432,000 postpaid phone accounts and 646,000 new internet connections. Free cash flow stood at $4.7 billion, up from $4.4 billion a year earlier.
| Second-quarter indicator | AT&T | Verizon | T-Mobile US |
|---|---|---|---|
| Total revenue increase | +2.3% | -0.7% | +7.9% |
| Adjusted EBITDA increase | +5.2% | +7.2% | +11.7% |
| Free cash generated | $4.7 billion | $6.4 billion | $4.8 billion |
| Postpaid net additions | 432,000 phones | 184,000 phones | 277,000 accounts |
| Source | AT&T About | Verizon | Q4 CDN |
T-Mobile discloses postpaid accounts rather than individual devices. Its definitions for non-GAAP cash flow and EBITDA also vary.
AT&T reported the highest postpaid phone net additions compared to Verizon. T-Mobile delivered the strongest growth in revenue and EBITDA, while Verizon posted the largest free cash flow for the quarter.
Chief Executive John Stankey stated, “We are accelerating the pace of our planned share repurchases this year.” AT&T is now targeting approximately $10 billion in buybacks in 2026. AT&T About
The current pace can help maintain earnings per share. It also competes with debt reduction following the spectrum payment. Investors must now factor in both commitments.
Interest rates will continue to be in focus next week. The ISM services data for July is set for release on Wednesday at 10 a.m. ET, followed by the July jobs report, which is scheduled for Friday at 8:30 a.m. ET.
AT&T’s regular dividend will be paid on Monday. If long-term yields climb further, the company’s remaining income advantage would be eliminated.
Risks: Elevated rates may pressure income stocks. Delays in deployment or slower subscriber growth might hinder deleveraging. Management’s projections for leverage and accretion are still initial.
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