AT&T Inc.

T
Communication Services
$24.25
4.59%Overvalued

AT&T Inc. (T) is a Communication Services company that currently yields 4.59% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $7.79 and the overvaluation threshold at $25.04. AT&T Inc. holds a quality score of 35/100 (Risky), reflecting 2 consecutive years of dividend growth with a 37% payout ratio. The 5-year dividend CAGR stands at -11.8%.

T Dividend Yield History — Weiss Valuation

Underval. $7.79Overval. $25.04

Distance to undervalued

Entry price is stretched

Needs 67.9% downside to reach the Weiss buy zone

Undervaluation starts near $7.79, where the annual dividend would imply roughly 14.27% yield. That is 9.68% above today's yield.

Buy-zone price

$7.79

Target yield

14.27%

Research checklist

What to clear before buying the yield

Updated Aug 13, 2026

Dividend durability

2Y

Verify the dividend record before treating yield as durable.

Earnings payout

37%

Earnings coverage leaves room for noise.

Cash payout

75%

Free cash flow coverage supports the payment.

Dividend growth

-11.8%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-08-122026-08-13

Price

-1.0%

$24.50 $24.25

Price fell 1.0% since the prior snapshot.

Why Now?

AT&T Inc. is trading near its historical overvaluation band.

Current yield 4.6% vs historical max 17.0% (27% of maximum).

2 years of uninterrupted dividends.

Conservative payout ratio of 37%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 35/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

T Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$459

Year 10 Income

$687

Yield on Cost

7.18%

Total Income

$5,657

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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T Dividend Quality Score

Quality Score

35/ 100

Risky

Payout Ratio25/25
Dividend Streak5/25
Growth (CAGR 5Y)0/20
Yield vs History0/15
FCF Coverage5/15

Key Metrics

Current Price$24.25
Annual Dividend$1.11
Current Yield4.59%
Yield — Max (10Y)17.01%
Yield — Min (10Y)5.08%
Undervalued Below$7.79
Overvalued Above$25.04
Payout Ratio36.63%
CAGR Dividend 5Y-11.8%
CAGR Dividend 10Y-5.1%
Years No Cut2y

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2
consecutive years of dividend growth