2024-04-30 11:52:33 ET
Summary
- AT&T revealed a decent earnings card for Q1 last week that showed progress in reducing debt and robust broadband momentum.
- The company is reducing its net debt and has a favorable deleveraging trend.
- AT&T confirmed its free cash flow guidance for FY 2024, indicating a dividend coverage ratio of up to 227%.
- Shares are attractively valued based on the P/E, forward P/E and P/FCF.
AT&T ( T ) delivered a decent earnings sheet for its first fiscal quarter on April 24, 2024, that showed continual momentum in broadband, free cash flow strength and progress in terms of debt reduction. AT&T’s debt has been a burden in recent years, but the telecommunications company is finally making some progress in tackling this issue. Considering that AT&T beat adjusted Q1 earnings estimates by $0.02 per-share, repaid billions of dollars in net debt in the March quarter and confirmed its free cash flow outlook, which implies a FY 2024 dividend coverage ratio in excess of 200%, I believe AT&T continues to make an exceptionally strong value proposition for dividend investors, especially when the valuation is considered!...
Read the full article on Seeking Alpha
For further details see:
AT&T Q1: Still A Durable Income Play With A 7% Yield