AT&T's CFO Pascal Desroches, T-CFO, spoke at the Bank of America's C-Suite Technology, Media and Telecommunications Conference on Tuesday, providing updates on the telecom giant's performance and strategies.
Desroches said AT&T's full-year free cash flow target for 2023 would be $16 billion or more. He also mentioned the company's expected second-quarter free cash flow to range between $3.5 and $4.0 billion, which would be in the range of $3.5 to $4.0 billion.
AT&T is tracking just over 300,000 postpaid phone net additions for the second quarter. The telecom firm also said it would use a generative AI tool for its employees.
Investors looking for capital gain and substantial dividend payments may find the company's latest updates attractive, as well as the stock trading near one-year lows.
Although AT&T may be referred to as a dividend trap, it was attributed to the company's long-term stock price decline, significant debt load of over $137 billion as of March 31, and competition in a mature telecommunications market.
Despite near-term obstacles, here are some tips for investors to earn $500 per month from AT&T.
We'll start with our monthly target of $500, which would translate to $6,000 per year $500 x 12 months. And we'll divide that by AT&T's 6.97% dividend yield: $6,000 0.0697 $86,083. An investor would need to own $86,083 of the assets. A monthly dividend income of $500 is generated with 21 shares of AT&T, or 5,417 shares.
While AT&T's stock is currently under one-year lows, there is potential for upward capital gains to accompany its dividends.
Assuming a more conservative goal of $100 monthly $1,200 annually, we do the same calculation: $1,200 6.97% $17,216. The company earned $1,084 per share, or 64 percent, for a monthly dividend income of $100.
The stock price and dividend payment can fluctuate over time, causing the dividend yield to fluctuate.
The annual dividend payment is calculated bydividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
If a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. In addition, if the stock price rises to $60, the dividend yield would decrease to 3.33% $2 $60. The dividend payment itself can also change over time, which can also impact the dividend yield. Even if the stock price is the same, the dividend yield will increase if a company increases its dividend. If a company decreases its dividend payment, the dividend yield will decrease.
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