AT&T: The Higher It Climbs, The More I’ll Invest
AT&T’s Fiber Broadband Growth and Increased Free Cash Flow
AT&T has been making significant strides in expanding its fiber broadband network, bringing high-speed internet access to more homes and businesses across the country. This growth in the fiber broadband segment has been a key driver of the company’s increased free cash flow, making it a compelling option for passive income investors.
Low Dividend Payout Ratio
One of the reasons why AT&T stands out as an attractive investment opportunity is its low dividend payout ratio. This means that the company is able to reinvest a significant portion of its profits back into the business, fueling further growth and creating value for shareholders.
Reaffirmed 2024 Free Cash Flow Forecast and Low Valuation
Despite reaching recent 52-week highs, AT&T’s stock remains moderately valued at 9.5x leading profits. The company has reaffirmed its 2024 free cash flow forecast, which further bolsters the investment thesis. Additionally, AT&T’s low valuation based on profits suggests that there is still room for growth in the stock price.
Intrinsic Value Estimate
Analysts have estimated AT&T’s intrinsic value to be in the range of $23-$25 per share, driven by the company’s robust free cash flow growth. This suggests that there is potential for the stock to appreciate further, making it a compelling investment opportunity for those looking for long-term growth.
How This Will Affect Me
As a potential investor, the growth of AT&T’s fiber broadband segment and increased free cash flow make it an attractive option for passive income. The low dividend payout ratio and reaffirmed free cash flow forecast provide confidence in the company’s ability to generate value for shareholders. Additionally, the stock’s moderately valued nature and potential for further appreciation make it a compelling investment choice.
How This Will Affect the World
AT&T’s continued investments in expanding its fiber broadband network have the potential to bring high-speed internet access to more people, ultimately bridging the digital divide and driving economic growth. The company’s robust free cash flow growth and low valuation based on profits suggest that it is well-positioned to deliver value to both investors and the broader economy.
Conclusion
AT&T’s Fiber Broadband growth and increased free cash flow make it a compelling option for passive income investors. With a low dividend payout ratio, reaffirmed 2024 free cash flow forecast, and low valuation based on profits, the stock remains moderately valued at 9.5x leading profits. Analysts estimate an intrinsic value of $23-$25 per share, driven by robust FCF growth. As the company climbs higher, the investment opportunities become more enticing.
