AT&T: Q1 Results Confirm Appeal Of Higher-Yielding Preferred Stock

  • AT&T's preferred shares offer an excellent risk/reward ratio for income-focused portfolios, with strong cash flow performance and a low payout ratio ensuring dividend safety. Despite increased operating expenses, AT&T's net profit rose to $0.61 per share (including non-recurring items), with adjusted net profit up 6% year-over-year. AT&T's 2025 guidance remains strong, expecting $16B+ in free cash flow and planning $3B in share buybacks by year-end.