The telecom giant reported its third quarter earnings on Wednesday. While revenues missed expectations, earnings per share beat estimates thanks to the company's stock buyback. The company boosted its free cash flow guidance by $2 billion to $18 billion this year. The company also activated 4.7 million iPhones in the quarter, more than in Q2. AT&T is the leading activator of iPhones in the U.S., and its subscriber base for the phone is rather large.
In early October, AT&T traded above $38 per share, meaning it was yielding 4.6%. With the recent decline in share price, the yield is up to 5.07%. That's an impressive yield, and the stock is at its lowest price since before the latest rally started in July. While the Q3 results may not have been spectacular, this is still a company generating lots of cash, allowing the company to pay an impressive dividend and buy back stock. With the yield crossing 5% again, investors might want to start looking at this name again.