AT&T reduces debt load, regains investment-grade credit rating, and offers a 4.4% dividend yield amid wireless subscriber growth.
AT&T has significantly reduced its debt since early 2022, improving its financial position and regaining an investment-grade BBB rating from S&P Global. The company’s dividend, now yielding 4.4%, is supported by a payout ratio at roughly half of projected 2026 earnings, allowing room for future increases.
In the first quarter of 2026, AT&T reported 294,000 net postpaid phone additions, slightly below the 324,000 added a year earlier but following three consecutive quarters of over 400,000 additions. The wireless and home internet segments drive growth in its connectivity business, though the U.S. market remains mature.
Management’s focus on debt reduction and operational stability has stabilized the stock after years of struggles from costly acquisitions. The dividend’s sustainability and credit upgrades signal improved investor confidence.