Its net income of $2.8 billion was also down 24% from $3.7 billion in profit a year ago.
For the year, it’s projecting free cash to come in at $26 billion or more. AT&T estimates that its payout ratio will be “in the high 50s%.”
Shares of AT&T are down 29% this year and that’s pushed its dividend yield up. It’s currently paying its shareholders a quarterly dividend of $0.52, which on an annual basis yields 7.5%. That’s a great payout and on a $10,000 investment it would generate $750 in annual income for your portfolio.
The company only recently launched HBO Max and in the earnings release stated that with 38 million domestic HBO and HBO Max subscribers, it’s already ahead of the 36 million subscribers it was targeting by the end of the year. As HBO Max continues picking up steam, it may only be a matter of time before the stock takes off, meaning that this high dividend yield may not last for long.