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AT&T boosts fiber growth and FCF with 4.5% dividend, new JV to counter satellite internet threats.

Market News
28 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

AT&T is positioning itself strongly with significant fiber network growth valued at around $54 billion, a robust free cash flow of $2.5 billion in Q1 2026, and an attractive 4.5% dividend yield. The company has formed a joint venture with T-Mobile and Verizon to use direct-to-device satellite technology to eliminate dead spots, reducing competition from satellite internet providers. This fiber expansion and convergence with cellular services create sticky customer relationships and support long-term margin growth. Management forecasts double-digit free cash flow growth, sustainable capital returns, and aggressive share buybacks, aiming to deliver reliable, market-beating returns to shareholders despite recent stock underperformance.

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