AT&T Inc. (T) A Classic Blue Chip Offering a Solid 4.9% Dividend Yield for 2025
AT&T, a company with nearly 140 years of history, is starting 2025 with strong support from analysts and renewed investor confidence. Known for its consistent dividend and strategic focus, this telecommunications giant is positioned to deliver solid returns in the coming years.
Wells Fargo recently highlighted AT&T as one of its top telecommunications picks for 2025, pointing to the company’s fiber-to-the-home broadband expansion as a key growth driver. Analyst Eric Luebchow noted AT&T’s clear long-term plans, which include returning $40 billion to shareholders between 2025 and 2027. He also emphasized the stock’s attractive valuation—trading at just seven times projected 2025 EBITDA—and the company’s strong free cash flow, which could enable further share repurchases beyond the $20 billion already expected.
RBC Capital Markets shares a similar sentiment. Analyst Jonathan Atkin upgraded AT&T to an outperform rating, highlighting the company’s efforts to streamline operations and capitalize on fiber investments. Atkin projects $6 billion in cost savings from the decommissioning of copper lines by 2027 and expects the company to add more than 500,000 converged households through 2030. RBC also raised its price target to $26, suggesting a 15% upside from recent levels.
AT&T shares gained 36% in 2024, excluding the company’s impressive 4.9% dividend yield. For investors seeking both reliable income and potential upside, AT&T offers an attractive combination. Its focus on core communications, disciplined cost management, and long-term growth opportunities make it a compelling choice for dividend-focused portfolios.
