Motley Fool says AT&T may suit income investors better than Verizon in 2026: AT&T's dividend yield is 4.7%, below Verizon's 6.3%, but its 90% payout ratio is lower than Verizon's 114%, leaving more room to sustain dividends and manage debt.
For FY 2025, AT&T reported $125.6 billion in revenue, $21.9 billion in net income and $19.4 billion in free cash flow; Verizon reported $138.2 billion, $17.2 billion and $20.1 billion, respectively. AT&T's debt-to-equity ratio was 1.6, compared with Verizon's 1.9. Verizon had the lower forward P/E (9.6x versus 10.9x), while AT&T's price-to-sales ratio was lower (1.4x versus 1.5x). The valuation data came from Financial Modeling Prep and may vary by provider.
Both companies face intense competition. AT&T also faces cybersecurity risks and regulatory uncertainty over lead-clad cables. Verizon's substantial debt may constrain its financial flexibility; its Frontier and Starry acquisitions pose integration risks, and it faces litigation over lead-sheathed cables.
