10 Best January Dividend Stocks To Buy

8. AT&T Inc. (NYSE:T)

Ex-Dividend Date: January 10

AT&T Inc. (NYSE:T) is an American telecommunications services company that provides a wide range of related services to its consumers. By offering both wireless and broadband services, the telecom giant aims to establish itself as the preferred provider of dependable, high-speed internet access, especially as online connectivity becomes increasingly crucial. The company plans to extend its fiber internet network to over 50 million locations by 2029, up from about 28 million today. In a CNBC interview, CEO John Stankey mentioned that customers who subscribe to both fiber and wireless services generally report higher satisfaction and lower churn rates. These favorable outcomes enhance the long-term value of these customers for AT&T. In the past 12 months, the stock has surged by nearly 30%.

In the third quarter of 2024, AT&T Inc. (NYSE:T) reported revenue of $30.2 billion, showing a slight 0.5% decrease compared to the same period last year. Despite facing challenges like severe weather and a workforce stoppage in the Southeast, the company achieved its 19th consecutive quarter of adding over 200,000 new AT&T Fiber customers. AT&T continues to expand its largest segment, Mobility, and is on track to lead the industry in postpaid phone churn for the 13th time in 15 quarters. The company remains focused on making strategic investments, reducing debt, and increasing its free cash flow for the year.

AT&T Inc. (NYSE:T)’s cash position makes it one of the best dividend stocks for income investors. The company’s operating cash flow in the most recent quarter came in at $10.2 billion and its free cash flow amounted to $5.1 billion. Currently, it offers a quarterly dividend of $0.2775 per share and has a dividend yield of 4.9%, as of January 5.

Insider Monkey’s database of Q3 2024 showed that 59 hedge funds owned stakes in AT&T Inc. (NYSE:T), compared with 71 in the previous quarter. These stakes are valued at over $5.6 billion. Among these hedge funds, Arrowstreet Capital owned the largest stake in the company.