There's a lot of uncertainty in the stock market and the U.S. economy right now, and that's probably putting it lightly. As the Trump administration implements new tariffs, businesses and consumers are prepping for price increases and supply chain disruptions, and recession fears are as high as they've been in a while.

All major indexes and blue chip stocks are down for the year in the stock market, leaving investors searching for safer investments to lean on during this time. One to consider is AT&T (T 0.75%), which has trended in a positive direction, up over 15% year to date and more than 56% in the past 12 months.

After an impressive run -- especially for a company whose share price struggled for years before the recent turnaround -- investors might wonder if AT&T's stock is still a buy or if they missed the boat. I believe it's the former.

How the current tariff plan could affect AT&T

AT&T's business requires quite a bit of physical equipment. The company relies a lot on foreign imports, from consumer electronics (smartphones, tablets, and the like) to network equipment (routers and switches), to cell towers. This goes for both finished products and components needed to build certain equipment.

Increased tariffs on countries like China, South Korea, and Finland likely mean higher costs for AT&T. Whether it will pass these costs on to consumers remains to be seen, but the telecom business -- especially with postpaid phone plans -- is very competitive, and increasing prices too much could mean losing customers.

If the tariff plan stands as is, you can expect AT&T's margins to thin as it absorbs most of the added costs, especially in the near term. It could find a way to pass some of these costs on to customers without losing them, but that's not an overnight move and will take time to hash out.

T Gross Profit Margin data by YCharts.

AT&T's dividend could give investors some stability

The main reason most people invest in the company is its high-yield dividend. Its quarterly payout is $0.2775, with an average yield of around 5.3% in the past 12 months. That's more than four times the S&P 500's average during that time.

Dividends are always good, but they can be especially helpful when the stock market is extra volatile. Last year, the business' free cash flow was $17.6 billion, and it paid out around $8.2 billion in dividends.

Assuming that stays consistent (it projects 2025 free cash flow to be between $17 billion to $18 billion), it should give management enough flexibility to deal with increased costs while still paying its dividend and focusing on reducing debt.

You can't predict how AT&T's stock (or any stock) will perform, but you can trust that its dividend will remain steady, even with the real potential of rising costs due to the newly implemented tariffs.

The telecom business isn't going anywhere

Most of AT&T's revenue comes from its wireless business (over 51% in the fourth quarter), but that's a relatively slow-growth business because most people already have mobile plans, and there's limited room for expansion.

Growth in the foreseeable future will come from its fiber business, which has been making impressive strides. In 2024, it added over a million subscribers, the seventh consecutive year it has hit that mark.

The up-front costs for building the fiber network are high, but it pays off in the long run because people typically pay a premium for faster internet services.

T Revenue (Quarterly) data by YCharts.

With a diverse telecom business that includes wireless, broadband (fiber, 5G, and the like), and enterprise solutions (network security and remote work tools), AT&T has become one of the more important companies powering the U.S. digital infrastructure.

The telecom industry has essentially become indispensable in today's world. If you're a long-term investor, AT&T is a stock that can provide consistent income and relative stability, especially as the company has refocused on its core telecom business. That doesn't mean it won't face declines or hit rough patches, but it's built to last.