Opinions
Stuart Hinshelwood
A T & T US
T-N
BUY
Sep 19, 2013
Stock price when the opinion was issued
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Premium contentAT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the worlds third-largest telecommunications company by revenue and the third-largest provider of mobile telephone services in the U.S. Social media mentions are up 50% in the past 24h.
Improved since fall 2023. 6.5% dividend yield, attractive, pretty secure. Price broke above 200-day MA. With yields falling, dividend stocks are more appealing. Seems to have bottomed, as long as rates stay stable or continue to fall. Total return, though, is not tremendous. Cheap, but only 2% earnings growth expected, and he likes double-digits.
Premium contentAT&T Inc. is an American multinational telecommunications holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the worlds third-largest telecommunications company by revenue and the third-largest provider of mobile telephone services in the U.S. Social media mentions are up 100% in the past 24h.
The wireline business is more difficult to build out and AT&T has a big presence in that area in the U.S He prefers Canada over the U.S. which is more competitive. He prefers BCE which already has a large wireline footprint and can bundle it with wireless. BCE raised its dividend by 3% a while ago and he has concerns over the payout ratio being more than 100%. However he thinks the dividend is sustainable.
Seeing resilience in the stock price right now. Fundamentals are hard to determine. Lots of mistakes in company management in the past. Pricing power not great. Could be a good dividend investment, but hard to justify when compared to other options in the markets. Overall, would not recommend investing.
Likes fundamentally but likes a lower entry point. He has had success in the past by getting in at around $30 and selling it at around $40. Well-run company. Verizon (VZ-N) has just agreed to buy back their wireless business from Vodafone (VOD-Q), so this has them tied up and they have to spin off some assets. Thinks they overpaid. In this environment, AT&T makes sense because they are trying to expand. Have already put $6-$7 billion to work this year. Generates a significant amount of cash flow. From a dividend/income type company perspective, he likes it at this time.