A big reason investors buy shares of telecom giant AT (NYSE: T) is its dividend and long-term stability. At nearly 7%, the dividend yield is incredibly attractive, as it is more than four times the S 500 average of 1.6%. And with the company projecting strong free cash flow this year, AT might get back to raising its payouts, perhaps as early as next year.

Should investors expect a bump up to the payout in 2024, or is the telecom giant still facing too many headwinds for it to get back to growing its dividend?

A big concern around AT this year has been whether the company can afford to pay its dividend. Its free cash flow has been volatile, and with a dividend yield AT more than 7% earlier this year, it was looking like the payout may be too good to be true.

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Source Fool.com