5 Best Telecom Dividend Stocks to Buy for 2022

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

Dividend Yield as of October 18: 7.25%

AT&T Inc. (NYSE:T) is one of the largest providers of cell phone services in the US. The telecommunications company holds a 23-year track record of consistent dividend growth, which makes it one of the best dividend stocks on our list. It currently pays a dividend of $0.2775 per share every quarter. The stock’s dividend yield stood at 7.25% on October 18.

In September, Barclays maintained an Equal Weight rating on AT&T Inc. (NYSE:T) with an $18 price target, acknowledging the company’s overall pricing growth and cable headline metrics.

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 the end of Q2 2022, 55 hedge funds tracked by Insider Monkey owned stakes in AT&T Inc. (NYSE:T), down from 74 in the previous quarter. These stakes have a total value of over $1.7 billion.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”