I feel like I'm a couple of days late in my timing in writing something about AT&T (T). This stock could have been bought for as little as $32.00 in the last few days. This is a great company that's bottoming out and should have been bought last week, but I was occupied by other things going on in my life, like my job. AT&T is a name familiar to anyone whose ever used a telephone so it really doesn't need any introduction, but for all those others, here's a short summary.
AT&T provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other. The Wireless segment offers various wireless voice and data communication services, including local wireless communications services, long-distance services, and roaming services. It also sells various handsets, wirelessly enabled computers, and personal computer wireless data cards through its owned stores, agents, or third-party retail stores; and accessories comprising carrying cases, hands-free devices, batteries, battery chargers, and other items to consumers, as well as to agents and third-party distributors. The Wireline segment provides data services, such as switched and dedicated transport, Internet access and network integration, U-verse services, and data equipment; businesses voice applications over IP-based networks; and digital subscriber lines, dial-up Internet access, private lines, managed Web-hosting services, packet services, enterprise networking services, and Wi-Fi services, as well as local, interstate, and international wholesale networking capacity to other service providers. This segment also offers voice services consisting of local and long-distance services for various business applications, which include sales, reservation centers, or customer service centers; and wholesale switched access service to other service providers. The Other segment provides application management, security services, integration services, customer premises equipment, outsourcing, government-related services, and satellite video services. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T, Inc. was founded in 1983 and is based in Dallas, Texas.
AT&T is a member of the List of Dividend Aristocrats and has been increasing it's dividends for 30 years. It's also one of the two dominant players in the telecommunications industry (along with Verizon). As a core telephone company, AT&T's move into the delivery of internet access and television delivery these last few years has broadened and secured their place in the future of American business and the American family.
Unfortunately AT&T's revenues and earnings haven't been very interesting for a number of years because they seem to generally be going nowhere, but it's a solid company with a growing dividend currently yielding 5.60%. That dividend, however, has experienced a rather tepid growth rate (DGR) these last few years that has barely kept up with inflation (3 Yr DGR of 2.30%, 5 Yr DGR of 2.38%, 10 Yr DGR of 2.84%). Fortunately the dividend is relatively generous and for those needing current income this is a great company to accumulate.
This is also a company with a very low beta of .33 so there's not that danger of a highly volatile security that needs to be monitored constantly. For those interested in swing trading this stock would easily allow for trading against the Bollinger Bands to add significantly to the yield provided by the dividend. For those not interested in swing trading this security has listed stock options which can provide a nice opportunity to sell covered calls off current holdings. Whichever way an investor decides to approach this stock, with a little work this stock provides a nice way to earn 10% or better annually.
If you're a growth investor rather than an income investor, you'll probably pass on this company. But this is a solid company that's been around for more than 100 years and isn't going anywhere anytime soon. I see this security as a core holding for any portfolio.
Unfortunately AT&T's revenues and earnings haven't been very interesting for a number of years because they seem to generally be going nowhere, but it's a solid company with a growing dividend currently yielding 5.60%. That dividend, however, has experienced a rather tepid growth rate (DGR) these last few years that has barely kept up with inflation (3 Yr DGR of 2.30%, 5 Yr DGR of 2.38%, 10 Yr DGR of 2.84%). Fortunately the dividend is relatively generous and for those needing current income this is a great company to accumulate.
This is also a company with a very low beta of .33 so there's not that danger of a highly volatile security that needs to be monitored constantly. For those interested in swing trading this stock would easily allow for trading against the Bollinger Bands to add significantly to the yield provided by the dividend. For those not interested in swing trading this security has listed stock options which can provide a nice opportunity to sell covered calls off current holdings. Whichever way an investor decides to approach this stock, with a little work this stock provides a nice way to earn 10% or better annually.
If you're a growth investor rather than an income investor, you'll probably pass on this company. But this is a solid company that's been around for more than 100 years and isn't going anywhere anytime soon. I see this security as a core holding for any portfolio.
 AT&T Weekly Chart |
Good Luck and Good Trading.
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