13 Best Cheap Dividend Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 80

Forward P/E Ratio: 12.94

An American multinational telecommunications company, AT&T Inc. (NYSE:T) has regained momentum, after facing significant challenges in recent years. The company has refocused its strategy by spinning off its pay-TV business, DirecTV, to concentrate on wireless and fiber connectivity. This strategic shift, along with last year’s transaction, generated billions in cash, enabling AT&T to make progress in reducing its substantial debt. Currently, the company holds over $122 billion in net financial debt, marking a nearly 10% decline from the $136 billion recorded less than two years ago.

AT&T Inc. (NYSE:T) has consistently prioritized shareholder returns, supported by its strong cash position. In the most recent quarter, the company generated $11.9 billion in operating cash flow, while free cash flow totaled $4.8 billion. Currently, it pays a quarterly dividend of $0.2775 per share and has a dividend yield of 2.15%, as of March 6.

For Q4 2024, AT&T Inc. (NYSE:T) delivered steady growth, with revenue increasing 0.6% year-over-year to $32.3 billion. Operating income reached $5.3 billion, and net income came in at $4.4 billion. The company saw 482,000 net additions in its postpaid phone segment and maintained an industry-leading postpaid phone churn rate of 0.85%. Mobility service revenues grew 3.3% from the prior year to $16.6 billion. In addition, its AT&T Fiber segment added 307,000 net customers, marking the 20th consecutive quarter with at least 200,000 net additions.