Alpha Algorithm Calls on AT&T
06/15/2016 8:00 am EST
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.
A top U.S. stock based on fundamentals measured by book value, cash flow and sales dividends.
The stock is among those in the S&P 500 that have increased dividends for at least 25 consecutive years.
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.
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.
By Nicholas Vardy, Editor of the Alpha Algorithm Alert.