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AT&T

NYSE:T
Snowflake Description

6 star dividend payer and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
T
NYSE
$222B
Market Cap
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Last updated 2019/03/21 00:05
Company description

AT&T Inc. provides telecommunication, media, and technology services worldwide. The last earnings update was 29 days ago. More info.

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T Share Price and Events
7 Day Returns
0.8%
NYSE:T
0.1%
US Telecom
1.2%
US Market
1 Year Returns
-13.7%
NYSE:T
-1.2%
US Telecom
3%
US Market
T Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AT&T (T) 0.8% -0.4% 7.8% -13.7% -21.5% -12.7%
US Telecom 0.1% 2% 2.5% -1.2% -10.7% -2.5%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • T underperformed the Telecom industry which returned -1.2% over the past year.
  • T underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
T
Industry
5yr Volatility vs Market
Related Companies

T Value

 Is AT&T undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AT&T to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AT&T.

NYSE:T Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 26 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:T
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.36 (1 + (1- 21%) (80.59%)) 		0.725
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%) 		7.5%

Discounted Cash Flow Calculation for NYSE:T using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AT&T is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:T DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 26,478.57 Analyst x14 24,631.69
2020 27,295.86 Analyst x14 23,620.87
2021 26,815.00 Analyst x3 21,586.22
2022 27,131.00 Analyst x3 20,317.22
2023 31,673.00 Analyst x1 22,064.15
2024 32,989.28 Est @ 4.16% 21,378.17
2025 34,219.14 Est @ 3.73% 20,628.44
2026 35,392.40 Est @ 3.43% 19,847.55
2027 36,531.70 Est @ 3.22% 19,057.52
2028 37,654.08 Est @ 3.07% 18,272.93
Present value of next 10 years cash flows $211,404.78
NYSE:T DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $37,654.08 × (1 + 2.73%) ÷ (7.5% – 2.73%) 		$811,284.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $811,284.38 ÷ (1 + 7.5%)10 		$393,703.50
NYSE:T Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $211,404.78 + $393,703.50 		$605,108.27
Equity Value per Share
(USD)		 = Total value / Shares Outstanding
= $605,108.27 / 7,284.59 		$83.07
NYSE:T Discount to Share Price
Calculation Result
Value per share (USD) From above. $83.07
Current discount Discount to share price of $30.51
= -1 x ($30.51 - $83.07) / $83.07 		63.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AT&T is available for.
Intrinsic value
>50%
Share price is $30.51 vs Future cash flow value of $83.07
Current Discount Checks
For AT&T to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AT&T's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • AT&T's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AT&T's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AT&T's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:T PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.86
NYSE:T Share Price ** NYSE (2019-03-20) in USD $30.51
United States of America Telecom Industry PE Ratio Median Figure of 17 Publicly-Listed Telecom Companies 16.95x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AT&T.

NYSE:T PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:T Share Price ÷ EPS (both in USD)

= 30.51 ÷ 2.86

 10.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AT&T is good value based on earnings compared to the US Telecom industry average.
  • AT&T is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does AT&T's expected growth come at a high price?
Raw Data
NYSE:T PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.68x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts		 3.4%per year
United States of America Telecom Industry PEG Ratio Median Figure of 8 Publicly-Listed Telecom Companies 1.16x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:T PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.68x ÷ 3.4%

 3.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AT&T is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AT&T's assets?
Raw Data
NYSE:T PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $25.28
NYSE:T Share Price * NYSE (2019-03-20) in USD $30.51
United States of America Telecom Industry PB Ratio Median Figure of 32 Publicly-Listed Telecom Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:T PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:T Share Price ÷ Book Value per Share (both in USD)

= 30.51 ÷ 25.28

 1.21x

* Primary Listing of AT&T.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AT&T is good value based on assets compared to the US Telecom industry average.
Show me more potentially undervalued companies in the Telecom industry
X
Value checks
We assess AT&T's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
    5. AT&T has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

T Future Performance

 How is AT&T expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AT&T expected to grow at an attractive rate?
  • AT&T's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • AT&T's earnings growth is positive but not above the United States of America market average.
  • AT&T's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:T Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:T Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts 3.4%
NYSE:T Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 2.2%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:T Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:T Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 193,447 53,336 21,399 1
2022-12-31 180,891 52,221 20,478 2
2021-12-31 184,971 50,060 22,465 10
2020-12-31 184,721 49,707 21,087 26
2019-12-31 184,088 48,578 19,783 26
NYSE:T Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 170,756 43,602 19,370
2018-09-30 164,439 42,200 33,549
2018-06-30 158,368 40,657 31,860
2018-03-31 159,219 39,133 30,643
2017-12-31 160,546 38,010 29,450
2017-09-30 160,711 38,615 12,850
2017-06-30 161,933 38,807 13,149
2017-03-31 162,616 40,409 12,642
2016-12-31 163,786 38,442 12,976
2016-09-30 164,064 38,387 14,545
2016-06-30 162,265 38,189 14,211
2016-03-31 154,760 37,042 13,885

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AT&T's earnings are expected to grow by 3.4% yearly, however this is not considered high growth (20% yearly).
  • AT&T's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:T Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below

All data from AT&T Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:T Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.89 2.89 2.89 1.00
2022-12-31 2.77 2.77 2.77 1.00
2021-12-31 2.99 3.45 2.62 4.00
2020-12-31 2.84 3.29 2.48 13.00
2019-12-31 2.66 3.19 2.32 13.00
NYSE:T Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.86
2018-09-30 5.17
2018-06-30 5.13
2018-03-31 4.97
2017-12-31 4.78
2017-09-30 2.09
2017-06-30 2.13
2017-03-31 2.05
2016-12-31 2.10
2016-09-30 2.36
2016-06-30 2.32
2016-03-31 2.37

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AT&T is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AT&T's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AT&T has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

T Past Performance

  How has AT&T performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AT&T's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AT&T's year on year earnings growth rate has been positive over the past 5 years.
  • AT&T's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • AT&T's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.
Earnings and Revenue History
AT&T's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AT&T Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:T Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 170,756.00 19,370.00 31,289.00
2018-09-30 164,439.00 33,549.00 32,657.00
2018-06-30 158,368.00 31,860.00 34,039.00
2018-03-31 159,219.00 30,643.00 34,027.00
2017-12-31 160,546.00 29,450.00 34,354.00
2017-09-30 160,711.00 12,850.00 33,664.00
2017-06-30 161,933.00 13,149.00 35,436.00
2017-03-31 162,616.00 12,642.00 36,422.00
2016-12-31 163,786.00 12,976.00 35,844.00
2016-09-30 164,064.00 14,545.00 34,711.00
2016-06-30 162,265.00 14,211.00 34,466.00
2016-03-31 154,760.00 13,885.00 32,946.00
2015-12-31 146,801.00 13,345.00 32,544.00
2015-09-30 139,121.00 5,340.00 38,961.00
2015-06-30 132,987.00 5,476.00 38,668.00
2015-03-31 132,547.00 6,053.00 39,181.00
2014-12-31 132,447.00 6,442.00 39,697.00
2014-09-30 131,171.00 17,354.00 28,940.00
2014-06-30 130,372.00 18,038.00 28,417.00
2014-03-31 129,872.00 18,201.00 28,341.00
2013-12-31 128,752.00 18,418.00 28,414.00
2013-09-30 128,167.00 7,479.00 40,815.00
2013-06-30 127,468.00 7,300.00 41,171.00
2013-03-31 126,968.00 7,380.00 41,055.00
2012-12-31 127,434.00 7,264.00 41,066.00
2012-09-30 127,359.00 4,443.00 37,875.00
2012-06-30 127,378.00 4,431.00 37,536.00
2012-03-31 127,298.00 4,120.00 37,503.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AT&T has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AT&T used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.
  • AT&T's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AT&T's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AT&T has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

T Health

 How is AT&T's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AT&T's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AT&T's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • AT&T's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of AT&T's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AT&T Company Filings, last reported 2 months ago.

NYSE:T Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 193,884.00 179,107.00 5,212.00
2018-09-30 184,971.00 185,122.00 8,701.00
2018-06-30 184,130.00 191,762.00 13,557.00
2018-03-31 147,076.00 163,830.00 48,872.00
2017-12-31 142,007.00 165,667.00 50,498.00
2017-09-30 126,109.00 165,122.00 49,008.00
2017-06-30 125,858.00 146,328.00 25,617.00
2017-03-31 124,981.00 136,904.00 14,884.00
2016-12-31 124,110.00 127,394.00 5,788.00
2016-09-30 124,603.00 128,481.00 5,982.00
2016-06-30 124,371.00 130,657.00 7,208.00
2016-03-31 124,405.00 133,085.00 10,107.00
2015-12-31 123,640.00 129,617.00 5,121.00
2015-09-30 122,789.00 130,132.00 6,695.00
2015-06-30 87,501.00 116,238.00 20,956.00
2015-03-31 87,104.00 100,425.00 4,444.00
2014-12-31 90,270.00 83,473.00 8,603.00
2014-09-30 93,119.00 76,536.00 2,458.00
2014-06-30 92,625.00 84,555.00 11,305.00
2014-03-31 91,369.00 80,418.00 3,611.00
2013-12-31 91,482.00 75,314.00 3,339.00
2013-09-30 86,130.00 76,784.00 1,371.00
2013-06-30 86,315.00 75,932.00 4,548.00
2013-03-31 88,338.00 74,915.00 3,875.00
2012-12-31 92,695.00 70,516.00 4,868.00
2012-09-30 101,274.00 64,538.00 2,228.00
2012-06-30 103,579.00 65,545.00 2,178.00
2012-03-31 105,187.00 66,410.00 2,588.00
  • AT&T's level of debt (92.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (82.4% vs 92.4% today).
  • Debt is well covered by operating cash flow (24.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4x coverage).
X
Financial health checks
We assess AT&T's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. AT&T has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

T Dividends

 What is AT&T's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.69%
Current annual income from AT&T dividends. Estimated to be 6.83% next year.
If you bought $2,000 of AT&T shares you are expected to receive $134 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AT&T's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • AT&T's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:T Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:T Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.14 2.00
2022-12-31 2.15 4.00
2021-12-31 2.12 12.00
2020-12-31 2.08 20.00
2019-12-31 2.05 21.00
NYSE:T Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-12-14 2.040 6.782
2018-09-28 2.000 6.410
2018-06-29 2.000 6.172
2018-04-02 2.000 6.029
2017-12-15 2.000 5.393
2017-09-29 1.960 5.494
2017-06-30 1.960 5.218
2017-03-31 1.960 5.021
2017-02-17 1.960 4.674
2017-01-25 1.960 4.736
2016-11-03 1.960 4.906
2016-10-24 1.960 5.356
2016-09-30 1.920 4.889
2016-06-24 1.920 4.588
2016-03-28 1.920 4.900
2015-12-18 1.920 5.313
2015-09-25 1.880 5.637
2015-06-26 1.880 5.547
2015-03-27 1.880 5.517
2014-12-19 1.880 5.579
2014-09-26 1.840 5.346
2014-06-27 1.840 5.225
2014-03-28 1.840 5.191
2013-12-13 1.840 5.506
2013-09-27 1.800 5.170
2013-06-28 1.800 5.177
2013-04-01 1.800 4.899
2013-02-22 1.800 4.962
2013-01-24 1.800 5.130
2012-09-28 1.760 5.089
2012-06-29 1.760 4.782
2012-04-02 1.760 5.312
2011-12-16 1.760 5.795
2011-09-30 1.720 5.963
2011-06-24 1.720 5.881
2011-03-25 1.720 5.584
2010-12-17 1.720 6.053
2010-09-24 1.680 5.876
2010-06-25 1.680 6.379
2010-03-26 1.680 6.577
2009-12-18 1.680 6.459
2009-09-25 1.640 6.181
2009-06-26 1.640 6.437
2009-03-27 1.640 6.532
2009-03-23 1.640 6.223

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of AT&T's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
Show me more dividend paying companies in the Telecom industry
X
Income/ dividend checks
We assess AT&T's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AT&T afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. AT&T has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

T Management

 What is the CEO of AT&T's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Randall Stephenson
COMPENSATION $29,118,118
AGE 57
TENURE AS CEO 11.8 years
CEO Bio

Mr. Randall L. Stephenson has been the Chief Executive Officer and Chairman of New Cingular Wireless PCS, LLC since June 2007 and also serves as its President since June 2007. Mr. Stephenson began his career with AT&T Inc. in 1982 in Oklahoma. He served as Senior Executive Vice President and Chief Financial Officer of AT&T Inc. from 2001 to 2004 and Chief Operating Officer from 2004 to 2007. He serves as Chairman of the Board, Chief Executive Officer and President of AT&T Inc. and its Director since 2005. He served as a Director of Emerson Electric Co. since 2006 until 2017 and served as Director of The Boeing Company since 2016 until 2017. He received B.S. in accounting from the University of Central Oklahoma and Master of Accountancy from the University of Oklahoma.

CEO Compensation
  • Randall's compensation has been consistent with company performance over the past year.
  • Randall's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the AT&T management team in years:

7.8
Average Tenure
58.5
Average Age
  • The average tenure for the AT&T management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Randall Stephenson

TITLE
Chairman
COMPENSATION
$29M
AGE
57
TENURE
11.8 yrs

John Stephens

TITLE
Senior Executive VP & CFO
COMPENSATION
$16M
AGE
59
TENURE
7.8 yrs

David McAtee

TITLE
Senior Executive VP & General Counsel
COMPENSATION
$13M
AGE
49
TENURE
3.4 yrs

John Stankey

TITLE
Chief Executive Officer of Warner Media
COMPENSATION
$17M
AGE
55

John Donovan

TITLE
Chief Executive Officer of AT&T Communications LLC
COMPENSATION
$15M
AGE
58
TENURE
1.6 yrs

Robert O'Sullivan

TITLE
Managing Partner and Partner

Mike Viola

TITLE
Senior Vice President of Investor Relations
AGE
64

David Huntley

TITLE
Senior Executive VP & Chief Compliance Officer
AGE
59
TENURE
4.3 yrs

Larry Solomon

TITLE
Chief Communications Officer
TENURE
11.4 yrs

Rick Moore

TITLE
Senior Vice President of Corporate Development
AGE
66
TENURE
11.8 yrs
Board of Directors Tenure

Average tenure and age of the AT&T board of directors in years:

6.1
Average Tenure
62.5
Average Age
  • The tenure for the AT&T board of directors is about average.
Board of Directors

Randall Stephenson

TITLE
Chairman
COMPENSATION
$29M
AGE
57
TENURE
11.8 yrs

Matt Rose

TITLE
Lead Director
COMPENSATION
$399K
AGE
58

Scott Ford

TITLE
Director
COMPENSATION
$325K
AGE
55
TENURE
6.8 yrs

Sam Di Piazza

TITLE
Director
COMPENSATION
$350K
AGE
67
TENURE
3.7 yrs

Laura Tyson

TITLE
Director
COMPENSATION
$360K
AGE
71
TENURE
19.4 yrs

Joyce Roché

TITLE
Director
COMPENSATION
$353K
AGE
71
TENURE
20.4 yrs

Mike McCallister

TITLE
Director
COMPENSATION
$325K
AGE
66
TENURE
6.1 yrs

Cindy Taylor

TITLE
Director
COMPENSATION
$333K
AGE
56
TENURE
5.8 yrs

Beth Mooney

TITLE
Director
COMPENSATION
$310K
AGE
63
TENURE
5.5 yrs

Glenn Hutchins

TITLE
Director
COMPENSATION
$310K
AGE
62
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by AT&T insiders in the past 3 months.
Show me more companies with insider buying in the Telecom industry
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Feb 19 Buy Michael McCallister Individual 05. Feb 19 05. Feb 19 7,000 $29.59 $207,135
06. Feb 19 Buy Geoffrey Yang Individual 04. Feb 19 04. Feb 19 33,558 $29.79 $999,535
29. Oct 18 Buy Michael McCallister Individual 26. Oct 18 26. Oct 18 4,000 $29.14 $116,553
10. Aug 18 Buy Samuel Di Piazza Individual 08. Aug 18 08. Aug 18 7,690 $32.49 $249,792
30. Jul 18 Buy Glenn Hutchins Individual 27. Jul 18 27. Jul 18 64,329 $31.05 $1,996,768
30. Jul 18 Buy Geoffrey Yang Individual 26. Jul 18 26. Jul 18 32,350 $30.48 $986,012
30. Jul 18 Buy Joyce Roché Individual 27. Jul 18 27. Jul 18 3,200 $31.19 $99,795
30. Jul 18 Buy Richard Fisher Individual 27. Jul 18 27. Jul 18 7,400 $31.04 $229,723
27. Jul 18 Buy Matthew Rose Individual 26. Jul 18 26. Jul 18 65,500 $30.53 $1,998,376
27. Jul 18 Buy Geoffrey Yang Individual 25. Jul 18 25. Jul 18 49,390 $30.40 $1,500,756
27. Jul 18 Buy Michael McCallister Individual 25. Jul 18 25. Jul 18 4,000 $30.31 $121,007
27. Jul 18 Buy Beth Mooney Individual 25. Jul 18 25. Jul 18 16,100 $30.73 $494,359
27. Jul 18 Buy Scott Ford Individual 25. Jul 18 25. Jul 18 15,000 $30.25 $453,675
X
Management checks
We assess AT&T's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. AT&T has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

T News

Simply Wall St News

Why Dividend Hunters Love AT&T Inc. (NYSE:T)

The company currently pays out a dividend yield of 6.7% to shareholders, making it a relatively attractive dividend stock. … Let's dig deeper into whether AT&T should have a place in your portfolio. … 5 checks you should use to assess a dividend stock

Simply Wall St - –

Some AT&T (NYSE:T) Shareholders Are Down 22%

(NYSE:T) shareholders, since the share price is down 22% in the last three years, falling well short of the market return of around 47%. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … It's worth taking a look at other metrics, because the EPS growth doesn't seem to match with the falling share price.

Simply Wall St - –

Looking At AT&T Inc. (NYSE:T) From All Angles

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … that has been a rockstar for income investors, currently trading at an attractive share price

Simply Wall St - –

What Makes AT&T Inc. (NYSE:T) A Great Dividend Stock?

(NYSE:T) is a true Dividend Rock Star. … Below, I have outlined more attractive dividend aspects for AT&T for income investors who may be interested in new dividend stocks for their portfolio. … What Is A Dividend Rock Star.

Simply Wall St - –

With A Return On Equity Of 10%, Has AT&T Inc.'s (NYSE:T) Management Done Well?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

What Are Analysts Saying About AT&T Inc.'s (NYSE:T) Future?

Want to help shape the future of investing tools? … Participate in a short research study and receive a subscription valued at $60. … AT&T Inc.'s (NYSE:T) latest earnings announcement in December 2018

Simply Wall St - –

Is AT&T Inc.'s (NYSE:T) CEO Pay Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Randall Stephenson's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$221b, and pays its CEO total annual compensation worth US$29m.

Simply Wall St - –

AT&T Inc. (NYSE:T) Insiders Increased Their Holdings

So we'll take a look at whether insiders have been buying or selling shares in AT&T Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months there was more buying than selling by AT&T insiders

Simply Wall St - –

What Kind Of Shareholder Appears On The AT&T Inc.'s (NYSE:T) Shareholder Register?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … Normally institutions would own a significant portion of a company this size.

Simply Wall St - –

AT&T Inc (NYSE:T): A Look At Return On Capital

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … Therefore, looking at how efficiently AT&T is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).

Simply Wall St - –

T Company Info

Description

AT&T Inc. provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr. The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers. This segment also sells handsets, wirelessly enabled computers, and wireless data cards manufactured by various suppliers for use with company’s voice and data services, as well as various accessories, such as carrying cases and hands-free devices through the company-owned stores, agents, and third-party retail stores. The WarnerMedia segment primarily produces, distributes, and licenses television programming and feature films; distributes home entertainment products in physical and digital formats; and produces and distributes mobile and console games, and consumer products, as well as offers brand licensing services. It also operates cable networks, multichannel premium pay television, and over-the-top services; and digital media properties. The Latin America segment offers video entertainment and audio programming services under the DIRECTV and SKY brands primarily to residential customers; pay-TV services, including HD sports video content; and postpaid and prepaid wireless services under the AT&T and Unefon brands, as well as sells various handsets through company-owned stores, agents, and third-party retail stores. The Xandr segment provides digital advertising services. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.

Details
Name: AT&T Inc.
T
Exchange: NYSE
Founded: 1983
$222,252,837,330
7,284,589,883
Website: http://www.att.com
Address: AT&T Inc.
208 South Akard Street,
Dallas,
Texas, 75202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE T Common Shares New York Stock Exchange US USD 21. Nov 1983
DB SOBA Common Shares Deutsche Boerse AG DE EUR 21. Nov 1983
XTRA SOBA Common Shares XETRA Trading Platform DE EUR 21. Nov 1983
SWX T Common Shares SIX Swiss Exchange CH CHF 21. Nov 1983
WBAG ATT Common Shares Wiener Boerse AG AT EUR 21. Nov 1983
SNSE T Common Shares Santiago Stock Exchange CL USD 21. Nov 1983
BVC T Common Shares Bolsa de Valores de Colombia CO COP 21. Nov 1983
BMV T * Common Shares Bolsa Mexicana de Valores MX MXN 21. Nov 1983
BOVESPA ATTB34 BDR EA REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 29. Dec 2011
BASE T CEDEAR EACH 3 REP 1 USD1 Buenos Aires Stock Exchange AR ARS 13. Sep 2000
Number of employees
Current staff
Staff numbers
268,000
AT&T employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:05
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Related Companies

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