AT&T's corporate segment is not expected to continue declining in 2025. Here's why:
- Stable Financial Performance: AT&T's financial results for 2023 showed a total operating revenue of $122.4 billion, an increase of 1.4% year-over-year1. Although the earnings estimate for 2024 has decreased slightly, the company's infrastructure investments are positioning it for growth2.
- Growth Focus: AT&T is enhancing its network infrastructure, including 5G and fiber networks, which will ensure widespread access to its services and position it for growth2. The company's commitment to closing the digital divide also underscores its dedication to fostering inclusive connectivity2.
- Dividend Attractiveness: AT&T offers a highly attractive dividend to shareholders, which is a key factor for income investors3. The company's dividend history and recent initiatives to improve its balance sheet and operations suggest a commitment to maintaining shareholder value3.
- Market Position: AT&T's universal brand recognition and entrenched market position make it a formidable competitor with a vast moat3. Despite past controversies around corporate governance and ill-fated acquisitions, the company's recent efforts to address these vulnerabilities are positive signs3.
In conclusion, while AT&T's corporate segment may face challenges, the company's strategic investments, financial stability, and commitment to shareholder value suggest that it is not likely to continue declining in 2025.