Tech stocks have generally done well this year, staging a solid recovery from a tough 2022. But not all tech stocks are created equal. AT (NYSE: T) looks like a bargain, while Apple (NASDAQ: AAPL) looks severely overpriced.

There are two core reasons to invest in AT stock: The valuation and the dividend. The stock price reflects an extreme amount of pessimism that looks overdone, and the dividend, while unlikely to grow quickly, has a sky-high yield.

AT expects to generate AT least $16 billion of free cash flow this year despite a slower pace of wireless subscriber additions. With a market capitalization of $114 billion, the stock trades for roughly 7 times free cash flow. That looks like a bargain.

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Source Fool.com