AT&T is planning $20 billion in stock buybacks and continued fiber investment

Key Takeaways

• AT&T plans a $20 billion stock buyback to reduce debt leverage.
• The company aims to expand its fiber business to over 50 million locations by 2029.
• AT&T prioritizes core connectivity business, focusing on 5G and fiber rather than multimedia ventures.

AT&T wants to be the best connectivity provider in America, and ahead of its investor day, the company has announced a $20 billion stock buyback. As reported by Market Watch, AT&T plans to put $40 billion towards buybacks and dividends. AT&T is set to spend $20 billion of that on dividend payments with the other $20 billion going towards stock buybacks. The company is also looking to expand its fiber business with millions of new locations over the next few years.

Related

AT&T: Everything you need to know

From company history and subscriber count to customer service

Posts

AT&T intends to buy back $20 billion worth of stocks, with the board of directors already approving the first $10 billion. This is expected to complete by the end of 2026 with another $10 billion expected as long as it is approved by the board. AT&T hasn’t bought back any stocks since 2020, and as Market Watch points out, this is a sign that the company is making progress in reducing its debt leverage. This is compared to $8 billion annually towards dividends over the past three years with no share repurchases.

AT&T is also still committed to expanding fiber

Fiber locations are expected to reach 50 million by the end of 2029

AT&T is also refocusing on its core connectivity business rather than multimedia ventures, with continued growth for 5G as well as its fiber reach. Fiber expansion has been a big focus for all of the Big Three carriers, with T-Mobile buying up fiber providers like Metronet and Verizon working on buying Frontier. In AT&T's press release, this focus is further exemplified by the carrier’s likely sale of its 70% share of DirectTV, which is expected to be completed by mid-2025.

AT&T's CEO, John Stankey, said of the announcement, “Over the last four years, we’ve achieved durable and profitable subscriber growth, generated attractive returns on network investment, and strengthened our balance sheet. We’re putting customers first to become the best connectivity provider in America. Our plan expands the country’s largest fiber network to more than 50 million total locations, modernizes our wireless network, and rewards our shareholders. As we grow, we expect to return more than $40 billion to shareholders over the next three years through dividends and share repurchases. With this bold strategy, we are entering a new era of sustained growth at AT&T.”

AT&T is already the country’s largest fiber provider and plans to expand its service to more than 50 million total locations by the end of 2029. This includes 5 million locations thanks to Gigapower, its joint venture with Blackrock. This is a big increase from the 29 million expected locations by the end of 2024, further helped by AT&T’s recent deal with Gorilla Glass to provide the company with fiber and connectivity equipment.

For the full year of 2024, AT&T expects wireless service revenue growth to be in the 3% range, with broadband revenue growth at 7% or higher. AT&T is perhaps best known as one of the best wireless carriers in addition to its fiber internet service. If you have both, your AT&T gateway should even get an update to allow it to use a backup wireless connection from your phone if the connection goes out.