Terms

Series

5.000% Perpetual Preferred Stock, Series A

Liquidation Preference

$25.00

Coupon Rate

5%

Rate Type

Fixed

Annual Dividend

$1.25

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

December 12, 2024

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations Of At&T Inc.; Pari Passu With: Parity Stock (Other Preferred Stock Ranking Equally); Senior To: Common Stock, Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

48,000,000

Prospectus Summary

AT&T Inc. is offering 48,000,000 depositary shares, each representing a 1/1,000th interest in a share of its 5.000% Perpetual Preferred Stock, Series A, with a liquidation preference of $25.00 per depositary share ($25,000 per underlying preferred share). Dividends are paid at a fixed 5.000% annual rate ($1.25 per depositary share per year, or $0.3125 quarterly) on February 1, May 1, August 1, and November 1, commencing February 1, 2020, and the Series A is callable at par on or after December 12, 2024. The Series A is cumulative, meaning any unpaid dividends accumulate and must be paid in full before AT&T can make distributions on junior securities or upon redemption/liquidation. The Series A ranks senior to AT&T's common stock and all other junior equity in dividend rights and liquidation distributions, and ranks pari passu with any future parity preferred stock. As a holding company instrument, the Series A is structurally subordinated to all indebtedness and preferred claims at AT&T's operating subsidiaries, meaning creditors of subsidiaries have prior claims on subsidiary assets. AT&T also retains a regulatory call allowing it to redeem the entire Series A (but not in part) within 90 days of losing a specified regulatory capital treatment — meaning investors face reinvestment risk if regulators determine the instrument no longer qualifies for its intended capital classification. At the $25.00 offering price, the depositary shares yield 5.00% annually. Dividends are expected to qualify as 'qualified dividend income' for non-corporate U.S. holders (subject to holding period requirements), eligible for the 15%/20% preferential tax rate, and for the dividends-received deduction for eligible corporate holders. Dividends are payable quarterly on the first of February, May, August, and November; record dates align with those set for the underlying Series A. If AT&T fails to pay full accumulated dividends on the Series A, its dividend stopper provisions prohibit any dividends on common stock or other junior securities and bar repurchases of junior stock — providing a meaningful protection mechanism, though AT&T is not obligated to declare dividends in any period.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If AT&T has not paid all accumulated dividends on the Series A, it cannot declare or pay dividends on its common stock or other junior securities, nor repurchase junior stock (subject to limited exceptions for employee benefit plans and reclassifications).

Other Preferreds from AT&T Inc.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 57 (Average)