AT&T Stock News

Maintaining dividend aristocrat status isn't easy, as it requires companies to pay out dividends consistently (and raise them each year) for 25 consecutive years, while maintaining a $3 billion market capitalization and be included in the S&P 500 index.

AT&T reported another strong quarter and the stock continued to move higher. AT&T's 12% forward free cash flow yield and low debt to EBITDA support a longer term case. There are some risks here, and we think preferreds could outperform until the middle of 2025.

As the stock market has moved higher, one victim has been dividend yields. With the average payout for the S&P 500 down to just 1.25%, such stocks have lost a bit of appeal at a time when investors can earn a guaranteed return of around 5% in some certificates of deposit.

Calpers sold GE Aerospace and Tesla stock, and bought more shares of AT&T and Costco in the third quarter.

Satellite TV giant DirecTV called off its deal with Charlie Ergen's EchoStar to acquire rival Dish TV and other assets. The deal would have created one of the largest pay TV distributors in the country with a combined 20 million subscribers.

US satellite TV business DirecTV (NASDAQ:DTV) is backing out of its agreement to acquire EchoStar's video distribution business, which includes rival Dish TV. DirecTV said it has notified EchoStar of its intention to cancel the acquisition after bondholders, holding $10.7 billion in debt, rejected a proposed debt swap that would have resulted in a $1.6 billion loss.

DirecTV has terminated its deal with EchoStar to acquire Dish DBS following bondholders' opposition to the debt-exchange proposal. The merger would have created the largest U.S. pay-TV provider, with DirecTV assuming EchoStar's debt.

A tie-up meant to help struggling satellite-TV companies is falling apart after creditors balked at a proposal to cut into their holdings.