TMUS - AT&T Vs. Verizon Q4 2023 Earnings Review: One Is The Clear Winner In 2024
2024-01-24 10:00:06 ET
Summary
- Both AT&T Inc. and Verizon Communications Inc. have reported resilient Q4 results this week. Both companies exceeded internal free cash flow guidance, while Verizon also outperformed consensus on top- and bottom-line.
- Free cash flow expansion remains the key focus in 2024, as both companies have a strong income-focused investor base that cares about their deleveraging progress and dividend yield durability.
- Looking ahead, both companies are well-positioned for tailwinds that include the inherent reduction in capital intensity pertaining to 5G deployments, alongside margin-expansion underpinned by subscription and ARPU gains.
- But one is the clear winner that demonstrates compelling prospects in capitalizing on both upside appreciation and attractive dividend yield in 2024 from current levels.
The recent resurgence in Treasury yield is likely to blame for both AT&T Inc. (T) and Verizon Communications Inc.'s (VZ) declines. As discussed in our previous coverage , we believe the performance of both telco stocks are closely pegged to movements in Treasury bonds with a consistent long-term average yield differential. But given their intact fundamental prospects coming out of a robust Q4, the recent declines represent an attractive setup to partake in quality dividend yield alongside upside appreciation....
AT&T Vs. Verizon Q4 2023 Earnings Review: One Is The Clear Winner In 2024