Wall Street is in love with this safe haven, dividend play and sees big returns this year
Wall Street analysts are even more confident in telecommunication company AT & T after its latest earnings report. AT & T is a safe haven, high yielding play that’s already outperformed this year, rallying more than 19% even as the S & P 500 has fallen 8%. Over the past 12 months, AT & T surged more than 61%. It also pays a dividend equal to a 4.1% yield today. The company’s first quarter results left analysts bullish on AT & T, saying solid results driven by a strong showing in subscriber count and expanding profit margins show the wireless provider is well-equipped to navigate uncertain macroeconomic waters and continue to outperform. “AT & T remains our favorite stock and [is] a top pick on the U.S. Equity Analyst Focus List following strong 1Q25 results,” JPMorgan’s Sebastiano Petti wrote on Wednesday. “Competitive intensity has picked up across the wireless ecosystem, but AT & T’s convergence playbook is winning in the marketplace and positions the company well in this more active switcher backdrop.” Petti raised his year-end target to $31 from $28, implying 14% upside from Wednesday’s close of $27.19 — excluding the dividend. T 1D mountain AT & T shares Thursday “Subscriber count is up, more subs are bundling, and margins are expanding — all ahead of expectations,” Bernstein’s Laurent Yoon said in a note, calling AT & T “more than a safe haven” following first-quarter results. His $29 price target would equal 7% upside for AT & T. Bank of America Securities is also enthusiastic. Analyst Matthew Griffiths reiterated a buy rating and raised his price objective to $32 from $28, implying 17% upside from Wednesday’s close. AT & T reported first-quarter revenue above analysts’ estimates and reaffirmed full-year profit guidance. Revenue of $30.60 billion exceeded the FactSet consensus estimate of $30.36 billion. First-quarter adjusted earnings of 51 cents per share matched expectations. AT & T forecast adjusted per-share earnings of $1.97 to $2.07 in 2025, while analysts polled by FactSet were anticipating $2.08 per share. To be sure, analysts said they expect higher tariffs could challenge AT & T later this year. But they were encouraged by the company pulling forward its planned cost initiatives, and expect little risk to AT & T’s long-term fiber buildout plans. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
Source – CNBC
