AT&T Beat on Earnings, Announced a $10 Billion Buyback, and Still Trades at 8 Times Earnings With a 4.6% Yield.
The telecom already has a plan for every dollar of its massive free cash flow stream -- and investors should love it.
Overview
The market has spent years treating AT&T (NYSE: T) as a bond that happens to trade on an exchange. Slow growth, a big dividend, and not much to think about in between.
The company's second-quarter report, delivered on Wednesday, July 22, mostly confirms that description on the revenue line. Second-quarter revenue rose 2.3% year over year to $31.6 billion. But nobody is buying this stock for the top line anyway.
Details
What the quarter did change is the size of the indirect "payments" shareholders get via share repurchases. Management lifted its 2026 buyback plan to about $10 billion from $8 billion, and the stock closed Friday at $24.13 after a 5.1% gain in the session -- still about 19% below its 52-week high of $29.79, and yielding 4.6%.
Source
Originally published at www.fool.com.