AT&T’s $1.11 annual dividend is backed by $19.4 billion in free cash flow, covering payouts nearly 2.4 times over.
AT&T’s $1.11 annual dividend yields nearly 5%, supported by $19.4 billion in free cash flow for fiscal 2025, covering payouts at a 42% ratio. The company plans $45 billion in shareholder returns through 2028, prioritizing buybacks to protect the dividend floor.
Free cash flow reached $19.4 billion in 2025, up from $8.18 billion in dividends paid. Management projects over $18 billion in free cash flow for 2026, with $8 billion earmarked for buybacks. Net leverage stands at 2.71x, trending toward 2.5x within three years.
Despite $138 billion in total debt, the balance sheet remains manageable for income investors, with shares trading at a sub-8x forward earnings multiple.