NEW YORK, July 1, 2026, 14:06 EDT
- AT&T slipped about 0.3% to near $20.65 just after 1:50 p.m. EDT. T-Mobile gained 3.4%. Verizon traded down 0.8%.
- The $0.2775 dividend per quarter gives the stock a 5.4% yield, annualized on the last price.
- Reuters hasn’t confirmed talks between SpaceX and Charter, but telecom stocks are still pricing in the risk.
AT&T Inc. NYSE:T dropped on Wednesday as T-Mobile US Inc. NASDAQ:TMUS gained. The moves show investors are zeroing in on AT&T’s cash strength and dividend, especially if satellite-powered mobile rivals force down wireless prices in the U.S.
The selling hasn’t been just a blip from a single negative story. Barron’s said Wednesday that Verizon Communications Inc. NYSE:VZ, AT&T and T-Mobile together have dropped $43.65 billion in market cap, with traders worried that SpaceX might shake up the U.S. telecom sector.
Space Exploration Technologies Corp. NASDAQ:SPCX and Charter Communications Inc. NASDAQ:CHTR have been in executive discussions over a possible U.S. consumer mobile phone deal, Bloomberg News said, according to MarketScreener. Reuters said it wasn’t able to confirm the report right away.
Live quotes just after 1:50 p.m. EDT had AT&T still trading lower, T-Mobile ticking up, and SpaceX under some pressure.
| Instrument | Price | Day move | P/E | Day range |
|---|---|---|---|---|
| AT&T Inc. NYSE:T | $20.65 | down 0.3% | 6.95x | traded between $20.53 and $21.03 |
| Verizon Communications Inc. NYSE:VZ | $42.01 | off 0.8% | 10.22x | $41.91 to $42.77 |
| T-Mobile US Inc. NASDAQ:TMUS | $173.43 | up 3.4% | 18.43x | $167.61-$173.52 |
| Space Exploration Technologies Corp. NASDAQ:SPCX | $161.25 | dropped 5.6% | — | moved from $157.99 to $176.12 |
| Charter Communications Inc. NASDAQ:CHTR | $141.98 | down 0.2% | 3.84x | $139.91-$145.74 |
| iShares U.S. Telecommunications ETF (NYSEARCA:IYZ) | $41.88 | lost 1.0% | — | $41.65 to $42.31 |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $747.44 | added 0.1% | — | touched $742.43 and $749.39 |
Oppenheimer’s Timothy Horan spelled it out for clients, according to MarketWatch: “SpaceX will disrupt the $1.6 [trillion] communications industry, in our view.” MarketWatch
BNP Paribas pushed back on the idea. The bank said SpaceX is probably going to need a big wireless carrier for any nationwide push, and said putting together a rival network might take years and call for over $100 billion to buy spectrum and build infrastructure.
That’s why AT&T’s valuation draws attention over the stock’s day-to-day move. The shares last changed hands at about 6.95 times earnings. Verizon is at 10.22 times, and T-Mobile sits up at 18.43 times. That discount is a market call on AT&T’s weaker growth outlook. The tradeoff is a bigger yield for income buyers.
AT&T is paying a common dividend of $0.2775 a share each quarter. The coming record date is July 10, with payment planned for Aug. 3. That puts the annual dividend at $1.11 a share, a yield near 5.4% with the stock at $20.645.
| AT&T metric | Latest value | Why it matters |
|---|---|---|
| Share price | $20.645 | Drives the dividend yield and P/E |
| EPS used by live quote feed | $2.97 | Makes for a 14.4% earnings yield |
| P/E | 6.95x | Well below T-Mobile’s multiple |
| Annualized common dividend | $1.11 | Comes from four $0.2775 payouts |
| Implied dividend yield | 5.4% | Yield is up after the share drop |
| 1Q26 free cash flow | $2.506 billion | What’s left after capex and vendor pay |
| 1Q26 dividends paid | $1.997 billion | Takes up 79.7% of free cash flow |
| 1Q26 free cash flow after dividends | $509 million | Buffer shrank from a year ago |
Cash is tight. AT&T’s free cash flow dividend payout ratio hit 79.7% for the first quarter, up from 66.5% a year ago. Free cash flow after dividends dropped to $509 million from $1.055 billion. Capital spending for the quarter came in at $4.877 billion.
SpaceX kept traders on edge. Reuters said Wednesday that short interest in SpaceX climbed to 196 million shares, about 31% of the free float, as of Tuesday. Ortex co-founder Peter Hillerberg called it “extraordinary for a stock that has been public less than a month,” adding: “SpaceX has been a roller coaster for the short sellers.” Reuters
AT&T didn’t get much help from the broader market. As of 11:51 a.m. ET, Reuters said the Dow was up 0.54%, S&P 500 up 0.16% and the Nasdaq down 0.31%. Communication services led the S&P 500 sectors, up 2.5%.
The New York Stock Exchange is running normal hours on Wednesday, open from 9:30 a.m. to 4 p.m. EDT. The exchange will be closed Friday, July 3, for Independence Day. AT&T shareholders face a July 10 record date for the common-share dividend, and the company will report Q2 earnings July 22.
Related articles: NYSE:T
