AT&T: 6.7% Yielding Debt Remains Very Attractive

AT&T baby bonds offer a 6.7% yield, trading at a 20% discount to par due to elevated interest rates. AT&T reported Q2 revenues of $31.6B and $5.04B in net profit, supporting robust coverage for both interest and preferred dividends. With $18B in targeted 2024 free cash flow, T's senior securities remain well covered despite heavy capital investments. I continue to add to my TBB position, anticipating potential capital gains if interest rates decline.

At the end of last year I published an article wherein I mentioned I was buying AT&T’s ( T ) baby bonds as a Christmas gift to myself . It turned out to be the gift that keeps on giving