AT&T’s dividend yield
Now let’s compare AT&T’s (T) dividend yield with Verizon’s (VZ). A company’s dividend yield is calculated by dividing the company’s annual dividend per share by its current market price per share. AT&T’s dividend yield was ~5.2% as of August 23, 2017, which was higher than Verizon’s dividend yield of ~4.8%.
In 2Q17, AT&T declared a quarterly dividend of $0.49 per share, up 2.1% over the same quarter last year. AT&T has paid total dividends of $3.0 billion in 2Q17. AT&T generates considerable cash flows, which support its generous dividend payout.
As of August 23, 2017, AT&T’s market capitalization was ~$232.8 billion, making it the largest US telecom giant in terms of market capitalization. In comparison, peer Verizon had a market capitalization of ~$197.0 billion, T-Mobile’s (TMUS) market capitalization was ~$53.2 billion, and Sprint’s (S) market capitalization was ~$33.1 billion.
Analysts’ recommendations for AT&T
As of August 23, 2017, the majority of analysts recommended a “hold” on AT&T’s stock. These recommendations represented ~69.0% of the total 29 analysts covering the stock. Meanwhile, ~27.6% of analysts recommended a “buy” on the stock. The remaining ~3.5% of recommendations on the stock were “sell.”