AT&T Stock Fell After Its Q4 Release Today -- Time to Buy This High-Yield, Passive Income Machine Hand Over Fist?

AT&T (T 1.02%) stock lost ground in Wednesday's daily trading. The telecom company's share price closed out the session down 3%, according to data from S&P Global Market Intelligence.

AT&T published fourth-quarter results before the market opened this morning, delivering mixed top- and bottom-line results. The company's revenue grew 2.2% year over year to hit $32.02 billion and beat the Wall Street target by $560 million. On the other hand, non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.54 in the period fell short of the market's call for per-share earnings of $0.56.

Additionally, the company's guidance for adjusted per-share earnings between $2.15 per share and $2.25 per share this year came in significantly lower than the average analyst estimate's call for per-share earnings of $2.47.

Is AT&T stock a buy after recent gains?

AT&T posted free cash flow of $6.4 billion in Q4, bringing its full-year total to $16.8 billion. After the company cut its dividend in 2022, passive income investors may be feeling gun-shy about the telecom giant's stock -- but its dividend looks well-supported based on the business's FCF generation. The company expects to generate free cash flow between $17 billion and $18 billion, so dividend coverage should actually improve going forward.

AT&T's growth will likely continue to proceed at a mute pace, and the company still has to pay down its sizable debt load. On the other hand, the stock still trades at multiples that look attractive for value-oriented investors seeking strong passive income streams. And with the Federal Reserve seemingly poised to begin cutting interest rates this year, some of the market's focus on the telecom giant's debt load could begin to dissipate.

With signs that the company's dividend is safe at current levels, AT&T stock looks like a worthwhile buy right now. Trading at roughly 7.6 times the midpoint of management's earnings guidance for this year and sporting a hefty 6.7% dividend yield, AT&T's shares offer an attractive value.