13 Best Dividend Stocks to Buy Under $50

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

Number of Hedge Fund Holders: 59

Share Price as of the Close of December 20: $22.75

AT&T Inc. (NYSE:T) ranks third on our list of the best dividend stocks under $50. The American telecommunications company places a strong emphasis on investing in digital infrastructure, with a focus on its mid-band 5G network, which now serves over 210 million people. This dedication to cutting-edge technology strengthens its competitive edge and improves service reliability. In addition, the company has been tackling social challenges by striving to bridge the digital divide and providing affordable broadband options to underserved communities. The stock has surged by over 33% since the start of 2024.

In 2022, AT&T Inc. (NYSE:T) shifted its focus by merging its WarnerMedia division with Discovery, moving away from media to concentrate on bolstering its telecom business. Under the leadership of CEO John Stankey, who took charge in 2020, the company has made significant strides in restructuring and reducing its long-term debt, setting the stage for long-term, sustainable growth.

In the third quarter of 2024, AT&T Inc. (NYSE:T) reported revenue of $30.2 billion, marking a slight decline of 0.5% 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. It continues to grow its largest segment, Mobility and expects to lead the industry in postpaid phone churn for the 13th time in the past 15 quarters. The company remains focused on making strong industry investments, reducing debt, and increasing free cash flow year-to-date.

AT&T Inc. (NYSE:T) showcased a solid cash position in its latest quarterly earnings report. The company generated $10.2 billion in operating cash flow and $5.1 billion in free cash flow. It declared a quarterly dividend of $0.2775 per share and has a dividend yield of 4.84%, as of December 23.