Summary
AT&T is down over 6% following mixed Q3 results.
The wireless and media giant maintained full-year financial targets.
The 6.5% dividend yield remains intact due to a large subscriber base that generates billions in quarterly free cash flows beyond the dividend payout.
AT&T (NYSE:T) might have disappointed the market with some weak Q3 subscriber numbers, but investors should be cautioned against overreacting to earnings for one quarter. The wireless and media giant has a vast subscriber base already throwing off billions in cash flows supporting the large 6.5% dividend yield. My base case for $40 isn't altered by these results and the overreaction of the market sending the stock down to $30.
Image Source: AT&T wireless website
