Value investing specialist Jason Clark, editor of The Prudent Speculator, reviews his assessment of ...
Top Picks 2018: AT&T (T)
01/22/2018 5:00 am EST
It has been a vastly changing telecommunications world ever since, but AT&T has been up to the task. Changes have been in such areas as wireless and DirectTV.
With the proposed takeover of Time Warner, AT&T will be getting a good foothold in the entertainment industry and we think the chances of a takeover are good.
This takeover is part of an evolving trend that is transforming AT&T from a pure telephone company into a media company and media provides an opportunity for greater long-term profits.
AT&T is also a profitable company. With all of the changes in media, AT&T has a return on equity of 14.5%.
The stock is cheap at a recent price of around $38. It has traded as high as $43.9 per share and we believe that AT&T will surpass this level in the near future.
A major reason for this selection is AT&T’s exceptional yield of 5.26%. One thing a stock can do that a fixed income can’t is provide an increase in the dividend. AT&T has raised its dividend every year since 2001.
This is a tradition with the company and this increasing dividend will probably increase every year in the next several years. This makes AT&T an excellent choice for those investors who are interested in income.
Related Articles on TELECOM
Vodafone (VOD) is one of the largest telecom companies in the world with over 400 million subscriber...
Robert Rapier is an industry-leading growth and income expert; he recently became senior editor of I...
Telefonica SA (TEF) has been hit this year by a weakened Euro/US dollar exchange rate and concern ab...