T - AT&T: New Game Plan Delivers Excellent 5G And Fiber Convergence

2024-05-11 10:00:00 ET

Summary

• T's dividend investment thesis remains strong with stable performance metrics, sustained growth investments, reiterated FY2024 FCF guidance, and rich yields.
• The telecom's growing fiber and internet air fixed wireless product adoptions are already driving growth opportunities, despite the temporal headwinds from the transition from copper-based broadband services.
• T's valuations are attractive compared to its telecom peers, making it a discounted investment opportunity for those looking to dollar cost average.
• Combined with the improving balance sheet health, we believe that the stock is likely to continue performing well as a telecom/ dividend stock, despite the lack of tech-like (beat-the-market) growth prospects.

We previously covered AT&T (NYSE: T ) in February 2024, discussing its misunderstood FY2024 guidance, since the net effect remained positive with growing Free Cash Flow generation and safe dividend investment thesis....

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