Alpha Algorithm Calls on AT&T

06/15/2016 8:00 am EST

Focus: STOCKS

Nicholas Vardy

Editor, Bull Market Alert, The Alpha Investor Letter, and The Global Guru

Our latest featured buy recommendation is a familiar blue-chip recommendation; seven different investment strategies that we monitor are betting on this stock, explains Nicholas Vardy, editor of the Alpha Algorithm Alert.

Founded in 1983 and based in Dallas, Texas, AT&T (T) provides telecommunications and digital entertainment services.

The company was formerly known as SBC Communications Inc. and changed its name to AT&T in 2005. Here's look at the strategies we follow that favor this stock.

High Quality Stock

The stock exhibits positive fundamentals, including high return on equity, stable year-over-year earnings growth and low financial leverage.

Fundamental Strength

A top U.S. stock based on fundamentals measured by book value, cash flow and sales dividends.

Dividend Aristocrat

The stock is among those in the S&P 500 that have increased dividends for at least 25 consecutive years.

Dividend Dog

One of the five highest-yielding stocks among each of the 10 sectors tracked in the S&P 500.

High and Steady Dividend

The stock is one of 50 dividend-paying companies from the S&P 1,500 Composite Index that has increased dividends for at least 20 consecutive years.

Small-Cap/Value Tilt

Selected using a multi-factor modeling approach, the stock is a smaller-cap or value stock designed to enhance portfolio risk/return characteristics.

Large-Cap Growth and Value

Using a proprietary ranking based on separate models for growth and value, this is a large-cap stock that is part of an index that has historically outperformed its market-cap weighted benchmark.

So far in 2016, dividend-paying blue chips have strongly outperformed the broader US stock market and the choice of AT&T reflects that trend.
Buy AT&T at market; place your initial stop at $34.00.

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By Nicholas Vardy, Editor of the Alpha Algorithm Alert.

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