AT&T is the slow and steady dividend stalwart of many portfolios. Some have bought AT&T to just sit back and collect dividends. While some have AT&T to collect dividends and write covered calls against it. I only go the second route when I feel a stock is getting overvalued and believe it or not AT&T does not fit that criteria, yet. The dividend currently yields %4.6 based on a stock price of $41.52. A huge problem I see with this company in terms of using it as a replacement income investment is since 2009, the dividend growth rate has been a paltry %2, barely beating inflation. All of my DGI people out there will scream and yell to stay away, should you?
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Overvalued.
Att is tech company in the making... Randall said so..target price should 100 dollars by Christmas. Investors don't care about culture, morale or innovation... The shell money game will do. Now on to the next layoffs
It's far more likely that T's price fell as a result of the Brexit vote, like the rest of the market than as a result of one random analyst downgrading the stock.
"it will put further strain on the bottom line inevitably leading to more layoffs. "
....Luckily Randy is an expert here.
hmm...thinking of a song "take the money and run"
AT&T Stock Falls on Ratings in pre-market trading on Friday after BRG cut its rating to "neutral" from "buy", there is no much more upside to shares.
Yes, the investors are so worried that T has been shooting up over the last several months.
According to it's filing back in March 2016 (see below for link), AT&T has amassed at least $130MM in debt. This HAS to be worrisome to investors and as investors begin to assess their risk and pull out of the stock, it will put further strain on the bottom line inevitably leading to more layoffs.
http://www.att.com/Common/about_us/files/pdf/investor_relations/debt_list_1q16.pdf