A T & T US

T-N

(A Top Pick Jun 21/19, Up 8%) He's not worried at all about pressures on wiring pricing in the States, and in fact expects more rational pricing to come with only three big players.

You need a long-term outlook here. It will profit from the 5G deployment that will take 2-4 years and a sizable investment. The semis who supply the 5G will do well, but companies like T-N are the ones investing a lot of money, so they won't see a return for 3-5 years.

It is a defensive stock. They are spread out all over the place and they have a flat growth rate. You are buying it for the dividend. It is not worth holding it in a non-registered account. Canadian telecoms are actually still growing.

They bought Time-Warner in a huge deal, so the big knock against them is taking on debt to do that. Also, can they blend TW successfully? Another knock is not growing their wireless subscribers; it's been slow and uneven. That said, ATT still generates a lot of free cash flow. Their priority is to pay down that debt, which will bring economic value to shareholders. It's simple math. Expect a 10% return + huge dividend of 6%. (Analysts’ price target is $34.28)

He owns Verizon instead where he'd rather be when 5G falls into place. Verizon is focussed on 5G. AT&T is not ready because they are distracted by merger talks. Switch to Verizon if you hold AT&T.

They own direct TV and just bought Time Warner. They are now in the content business. It has a fine dividend yield. It is watered down in terms of what it gives you as an investor.

They are under the same threat as the others but they can pick content. They made an acquisition for content. 6% yield. (Analysts’ price target is $34.31)

Likes the chart for establishing a series of higher lows. He expects it to test $33.

He swapped Verizon out and bought ATT recently because last year Verizon was up 12% and ATT down 16%. ATT though is a good business and pays an attractive dividend of 6.8%, which is a rare, but safe level for a telco. A good, long-term story.

He is contemplating buying more. VZ-N is the market leader with less debt. With 5 G coming at us it will be the highest spend the industry has ever made. VZ-N is the quality stock but T-N made a big acquisition in Comcast. You could buy it for the dividend.

Owns Verizon instead who are building out the 5G network whereas AT&T is more into media after buying Time-Warner. He sold when AT&T bought more media.

It's no a phone company anymore. They bought Direct TV to get into the media business, which demands a lot of investment. ATT isn't the best competitor in this space.

He hasn't studied this in a while. The US telcos don't tempt him. They've acquired a lot of entertainment platforms, then paid them off. Bad balance sheet. He prefers Canadian telcos like Rogers who have de-levered a lot. Don't buy a stock only for its dividend.

vs. AT&T AT&T's 6.6% yield is safe, but the stock is dropping. He prefers Verizon with a stronger stock price though 4.2% yield.

He likes telecoms because of 5G and data-heavy applications. Data traffic will be enormous; people are consuming more and more data, huge amounts already. This will only grow. Only the huge telcos can support this traffic.