5 High Free Cash Flow Dividend Stocks

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

Free Cash Flow Yield: 18.9%
Dividend Yield as of August 1: 5.91%

AT&T Inc. (NYSE:T) is a Texas-based multinational telecommunications company that is the largest provider of mobile phone services in the US.

In Q2 2022, AT&T Inc. (NYSE:T) generated over $1.1 billion in free cash flow, up from $984 million in the previous quarter. The company’s operating cash flow came in at nearly $6 billion, compared with $5.7 billion at the end of March 2022. Its free cash flow yield stood at 18.9%. The company expects to generate over $10 billion in free cash flow in the second half of the year. AT&T Inc. (NYSE:T) paid over $2 billion worth of dividends during the quarter and its free cash flow dividend payout ratio came in at 150%.

AT&T Inc. (NYSE:T) has been raising its dividends consecutively for the past 23 years. Its current quarterly payout stands at $0.2775 per share, with a yield of 5.91%, as of the close of August 1.

In July, Morgan Stanley set a $22 price target on AT&T Inc. (NYSE:T) with an Overweight rating on the shares, highlighting the company’s earnings beat in Q2 2022.

As per Insider Monkey’s data, 74 hedge funds were bullish on AT&T Inc. (NYSE:T) in Q1 2022, up from 70 in the previous quarter. The stakes owned by these hedge funds are collectively valued at over $4 billion. Among these hedge funds, Arrowstreet Capital owned the largest stake in the company, valued at $678.5 million.

Weitz Investment Management mentioned AT&T Inc. (NYSE:T) in its Q4 2021 investor letter. Here is what the firm has to say:

“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”