Telecom stocks have had a great start to the -2-
Comcast features a dividend yield of 4.14%, also very well supported by expected FCF per share.
Verizon's dividend yield of 5.54% is the highest on the list, with a FCF yield estimate implying headroom of 4.31%.
AT&T is more expensive, with a forward P/E of 12.2, but that is still low when compared with the sector and the S&P 500, and its 3.88% dividend yield appears to be well supported. Assuming the EchoStar deal is completed this year, AT&T will take a hit to earnings and cash flow. However, the company said when the deal was announced that it expected the spending to be "within the multiyear capital-investment guidance provided with its second-quarter 2025 earnings release." And that guidance included annual "[f]ree cash flow in the low- to mid-$16 billion range." The company's free cash flow for 2025 totaled $15.25 billion, according to LSEG.
Warner Bros. Discovery (WBD) is at the bottom of the list, with no forward P/E because the consensus earnings estimate for 2026 is a net loss of 16 cents a share. Then again, Paramount Skydance (PSKY) expects to complete its acquisition of WBD in the third quarter of this year.
Investing in an individual stock is nothing to take lightly. If you see any stocks of interest here, you should do your own research to form your own opinion about how likely a company is to remain competitive over the next decade. One way to begin that process is to click on the tickers for more information.
Read: Tomi Kilgore's detailed guide to the information available on the MarketWatch quote page
Deep Dive: Seven REIT stocks pass a strict financial screen, with dividends as high as 6.27%
-Emily Bary -Philip van Doorn
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03-09-26 0719ET
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