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How AT&T’s Dividend Yield Compares to Peers

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AT&T’s dividend yield

Now we’ll evaluate AT&T’s (T) dividend yield in comparison to peer companies like Verizon (VZ). A dividend yield is a way to measure a company’s annual dividend per share relative to its price per share. It highlights how much cash an investor is receiving for every dollar that is invested in the company’s equity. AT&T’s dividend yield was ~5.5% as of October 13, 2017, which was higher than Verizon’s yield at ~4.7%.

Earlier in 2Q17, AT&T had declared a quarterly dividend of $0.49 per share, up by around 2.1% over the corresponding quarter last year. In 2Q17, AT&T paid total dividends of $3.0 billion. AT&T reported considerable cash flows, which support its generous dividend payout.

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AT&T’s scale

As of October 13, 2017, AT&T’s market capitalization was ~$219.2 billion, making it the largest US mobile carrier in terms of market capitalization. By comparison, Verizon had a market capitalization of ~$195.2 billion, T-Mobile’s (TMUS) market capitalization was ~$51.0 billion, and Sprint’s (S) market capitalization was ~$28.5 billion.

Moving average convergence divergence

As of October 13, 2017, AT&T has a moving average convergence divergence (or MACD) of 0.22. T-Mobile’s MACD is -0.42, Verizon’s is 0.36, and Sprint’s is -0.18. A negative MACD figure suggests that a stock is in a downward trading trend, whereas a positive MACD figure implies an upward trading trend.

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