It feels like 2026 is the year that boring stocks became somewhat exciting again. Of course, that ultimately depends on what you find exciting. Arguably, the bear market in software stocks, as well as the implosion in various AI stocks, seems to have created an exciting entry point for the growth-focused long-term investors still interested.
Either way, if it’s upside, momentum, value or even relative stability that interests you most, perhaps it’s time to give AT&T (NYSE:T) a second look. It’s a forgotten dividend behemoth that’s been on quite the comeback in recent years. Even amid 2026’s turbulence, the comeback might not be derailed, especially as growth investors return to the defensive dividend trade for relative insulation from all the volatility we’ve faced and choppiness that’s to come.
AT&T might be boring, but it pays big dividends, and its comeback might be hard to stop
Understandably, AT&T isn’t exactly a name that would score you “oohs and ahs” from your savvy investing friends, especially since AI, agents, and all the sort have been the talk of the town. And despite weakness in some of the winners holding up the trade, there’s really no denying the disruptive impact. It’s an uneasy time as AI disruption looks to automate jobs and apply pressure to the vulnerable firms that could lose their lunch to the rise of agentics. Further down the road, we’ve got robotics, and that could challenge the way investors really think about moats.
Could it be that the physical moats aren’t as wide as we thought? Could there be a physical SaaS-pocalypse equivalent at some point down the road? It’s impossible to tell today, but I do think that AT&T is one place where investors can inject their portfolios with a double dose of calm, especially as the Iran war adds to the long list of worries, which, of course, includes the long-term AI impact.
Whether you own shares of AT&T through a dividend exchange-traded fund or if you’ve stashed them away in the defensive part of a barbell portfolio, I’d argue that the telecom behemoth is still worth considering, especially if you’re looking for investment ideas beyond the tech trade, which is no longer working for many.
Of course, the tech wreck could be a great long-term opportunity to add to a position, but if you’re like the many investors who are already overexposed, perhaps the AT&Ts of the world are more exciting to own. At the very least, they’ll help you ride things out if tech’s breather winds up lasting longer than just a few months.
Getting back on the growth track
With AT&T shares now up around 13% year to date (crushing the S&P, by the way), it might seem like chasing right here. But the 4.1% dividend yield is the real deal, and it looks positioned for growth.
The company is spending a great deal ($250 billion) to upgrade its network in the next five years. Investors might not be fans of CapEx, but when it comes to non-AI endeavors, especially those proven to generate cash flows, it seems like they don’t mind with the telecoms. In any case, I view AT&T as well-positioned right here as it stays in the good books of investors.
There’s a lot more to love about the yield and the growth path ahead, though. As a part of the company’s big multi-year spending plan, it’ll be exploring “AI-ready” networks as well as satellite connectivity. Sure, we’re a long way away from space satellites beaming enough low-latency data to stream on our phones, especially within buildings in the downtown area, but such connectivity is just in its infancy. And it’s bound to get much better. With AT&T investing in the future of connectivity, it stands out as a steady winner with the means to raise the bar on the dividend over time.
At just 9.1 times trailing price-to-earnings (P/E), perhaps it’s time to stay the course on the low-tech titan that’s finally getting it right. With a low 0.58 beta, look for T stock to stand tall on those nastier days for tech.
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