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AT&T shares drop 20%, but strong cash flow and growth offer long-term value and dividend potential.

Analyst Insights
26 Oct 2026, 18:01 WIB
Seeking Alpha
View Source
Bullish
AT&T shares drop 20%, but strong cash flow and growth offer long-term value and dividend potential.

AT&T's stock has fallen over 20% since mid-September, largely due to concerns about its $150 billion debt. Despite this, the company shows strong growth in its fiber and connectivity segments, with rising revenue, EBITDA, and a 42.8% convergence rate. AT&T generates increasing free cash flow, supporting a dividend yield above 5% and plans for aggressive share buybacks. Management aims to reach $21 billion in free cash flow by 2028, enabling continued dividends, buybacks, and gradual debt reduction, making it a compelling long-term investment opportunity.

AT&T trades at USD 21.10 on Pluang as of Oct 26, 2026 22:11 WIB, showing a 0.81% gain in one day. The stock offers a dividend yield of 5.3%, aligning with the article's mention of a yield above 5%. Its market cap stands at $140.99 billion, reflecting its significant presence in the media sector.

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