If you're an everyday investor in search of stocks that can pay you steadily increasing sums, America's telecommunications oligopoly is a good place to start. At the moment there are just three companies with nationwide 5G networks, and new subscribers who are likely to stick around a long time are flocking to their services.

AT&T (NYSE: T) offers a 5.1% dividend yield at recent prices. The stock has risen about 44% over the past year, and investors want to know if it can keep soaring. Here's a closer look at recent results to see if this telecom giant belongs on your buy list.

Why AT&T stock is soaring

Shares of AT&T are up by about 44% over the past year. AT&T's stellar performance is partly due to a low starting point. The stock fell hard in 2022 after the company adjusted its dividend payment downward to compensate for the spinoff of its media assets.

Now that AT&T doesn't have to worry about cord-cutters, it can focus on growing its roster of mobile and broadband internet subscribers. Folks are generally hesitant to change their internet service providers, so the cash flows this company produces could be extremely reliable.

AT&T hasn't started raising its quarterly payout again, but a return to regular payout bumps in 2025 seems likely. During the year ended September, net debt fell by 2.3% to $125.8 billion. That works out to 2.8 times adjusted earnings before interest, taxes, interest, and depreciation (EBITDA) over the past 12 months.

AT&T expects its ratio of net debt to adjusted EBITDA to reach a target of 2.5 in the first half of 2025. Management hasn't made explicit promises, but investors can reasonably expect the return of annual payout raises once debt reaches its target level.

Total third-quarter revenue fell by 0.5% year over year, but the headwinds holding AT&T back should steadily subside. Equipment sales fell 5.7% year over year to $4.5 billion because consumers are increasingly hesitant to upgrade their smartphones.

It's harder to find reasons to upgrade today's smartphones, but sooner or later the ones we have will need to be replaced. We don't know how low equipment sales could fall, but AT&T must be getting close to a bottom.

In addition to sliding smartphone sales, AT&T is dealing with lower demand from businesses for legacy voice and data services. Business wireline sales tanked 11.8% year over year to $4.6 billion.

Why AT&T could rise further

Now that the heaviest losses regarding equipment and legacy voice sales are in the rearview mirror, it will be easier for mobile and broadband internet subscription sales to push AT&T's big needle forward.