AT&T Stock Falls on Earnings, But its 6.3% Yield Is Attracting Investors

AT&T (T) reported positive earnings on April 20, but investors were concerned about the low level of its free cash flow. The stock dropped by over 10% to $17.65 per share by the end of the day. Nevertheless, its $1.11 per share dividend looks to be secure, making its 6.29% ($1.11/$17.65) yield still attractive to investors.

The company said its free cash flow (FCF) was $1.0 billion, which was disappointing to some investors. For example, the dividend costs just over $2 billion, leaving cash flow negative after the dividend.