Telecom stocks have been showing strong momentum this quarter as investors move cash into steady, income‑focused names ahead of earnings season. Traditional telecom companies havegained about 14.3% on average since the last reporting cycle, helped by broader optimism across the sector. Global telecom spending is also projected to climbabout 4% this year to roughly $1.42 trillion, according to Statista, reflecting steady demand for connectivity and network upgrades.
That growing confidence has put more eyes on AT&T Inc. (T), which currentlyoffers a 4.25% dividend yield and will release its third‑quarter results on Oct. 22, before market open. Analystsexpect around a 10% drop in profit year-over-year (YoY), though most are focused on how continued growth in wireless and fiber could offset weakness in its older business lines. The company has also topped Wall Street’s estimates in three of the past four quarters, keeping expectations for another beat alive heading into this report.
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With telecom peers outperforming and AT&T’s next results just days away, could this be the buying window dividend investors have been waiting for before Oct. 22? Let’s take a closer look.
AT&T is a major U.S. telecom company focused on wireless and broadband services formed from the Bell System divestiture of 1982 and subsequent re-consolidation in the 90s. Its business runs on recurring revenue from mobile and internet customers, supported by its large network infrastructure and nationwide reach.
Over the past year, T stock hasgained 18.76% and is up 13.86% year to date (YTD), showing steady improvement as management tightens execution and cash generation.
The stock trades at aforward P/E of 12.83x, below the sector average of 13.98x, which suggests investors still see some execution risk even as the business becomes more stable.
The main appeal remains its income potential. AT&T pays an annual dividend of $1.11, giving a 4.21% yield, well above the sector’s 2.62% average. The most recent quarterly dividend of $0.278, paid on Oct. 10, sits comfortably within a 50.11% forward payout ratio.
