
NYSE:T
This summary was created by AI, based on 3 opinions in the last 12 months.
AT&T (T-N) is currently facing challenges, evidenced by its stock falling below the 200-day moving average, which is also on a downward trend. Analysts are cautiously optimistic about the potential for the stock to turn around from its long-term downtrend, with some suggesting that small investments could be made as long as it remains above the January lows of $23. A breakout above the recent high of approximately $26.50 could indicate a more favorable outlook, allowing investors to add to their positions. However, the current economic environment, particularly the potential rise in interest rates, poses a risk due to AT&T's substantial debt. Despite being perceived as undervalued, the company is struggling with growth prospects, and some analysts recommend diversifying into pipeline stocks for better inflation protection. The current yield of 4.4% may be attractive, but long-term growth remains a concern.
Telco sector has lagged from the March lows. More of a value and dividend play. Yield now is 7.8%, and is that sustainable? He owns Verizon.
T vs. VZ Dividend stocks are much more valuable in low interest rate environments. He'd go with Verizon. Do you want to just go for the very high dividend? This could be a red flag. Could be at risk, and wiped out with capital loss on the stock side.
The dividend jumps out, currently 7%, which is attractive, though keep in mind this is a US stock, so Canadians will be taxed on part of this. ATT will protect that dividend. ATT is known as a consistent cash generator. He's less thrilled with the business though--the competition from streamers from Netflix et al is extreme and they're losing. So, the stock could deteriorate while the dividend stays at 7%. He's neutral about ATT.