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Comparison

AT&T vs Verizon Stock: Telecom Comparison

Compare AT&T and Verizon stock, wireless subscribers, dividend yields, and which telecom company is the better investment.

AT&T vs Verizon Overview

AT&T and Verizon are America’s largest telecommunications companies, competing primarily in wireless services. Both are known for their high dividend yields and stable business models.

Company Comparison

Metric AT&T Verizon
Market Cap ~$150B ~$180B
Revenue (2025) ~$125B ~$135B
Founded 1983 (current form) 1983
Headquarters Dallas, TX New York, NY
Dividend Yield ~5% ~6%

Wireless Subscribers

Metric AT&T Verizon
Postpaid Phone ~70M ~95M
Prepaid ~18M ~22M
Total Connections ~240M ~300M

Verizon leads in postpaid wireless, the most valuable segment.

Business Segments

AT&T

Segment Revenue %
Wireless ~65%
Business Wireline ~25%
Consumer Wireline ~10%

Verizon

Segment Revenue %
Wireless ~75%
Wireline/Business ~25%

Financial Comparison

Metric AT&T Verizon
Revenue Growth ~1% ~1%
EBITDA Margin ~35% ~37%
Free Cash Flow ~$18B ~$20B
Debt ~$130B ~$150B
Debt/EBITDA ~3.0x ~2.8x

Dividend Analysis

Metric AT&T Verizon
Dividend Yield ~5% ~6%
Payout Ratio (vs FCF) ~45% ~55%
Consecutive Years Paid 30+ years 30+ years
Recent Dividend Trend Cut in 2022 (post spin-off) Stable growth

Note: AT&T cut its dividend after spinning off WarnerMedia.

5G Investment

Both companies have invested heavily in 5G:

Factor AT&T Verizon
5G Strategy Mid-band focus Mix of all bands
C-Band Investment ~$23B ~$53B
Coverage Expanding Expanding

Competitive Position

AT&T Strengths

  • Strong fiber expansion program
  • FirstNet (public safety network)
  • Lower debt after WarnerMedia spin
  • Improving wireless net adds

Verizon Strengths

  • Best network reputation
  • Largest postpaid subscriber base
  • Higher-value customer mix
  • Fixed wireless momentum

Risks

Risk AT&T Verizon
Debt levels High High
Competition (T-Mobile) High High
Cord cutting Medium Medium
5G return on investment Uncertain Uncertain

T-Mobile Competition

T-Mobile has gained significant market share, pressuring both AT&T and Verizon on pricing and subscriber growth.

Valuation

Metric AT&T Verizon
P/E Ratio ~10x ~10x
EV/EBITDA ~6x ~6x
Price/FCF ~8x ~9x

Both trade at similar, low valuations typical for mature telecoms.

Which Stock to Buy?

Preference Choose
Higher dividend yield Verizon
Better network perception Verizon
Turnaround potential AT&T
Fiber growth story AT&T
Lower debt ratio AT&T

For income investors, both offer attractive yields with similar risk profiles.

Stock data as of early 2026. This comparison is for informational purposes only and does not constitute investment advice.