The company’s subscribers actually grew last quarter by 800,000. What’s more, AT&T isn’t dying at all, it's actually growing like a weed. Now is the time to sit back, sip on your lemonade, and enjoy the dividend dollars rolling in each quarter.
Would this be the time to cut the tree down to use for fire wood? I think not. It has grown into a majestic tree with a large canopy (6% dividend yield) that creates substantial shade (income) for you to enjoy during your golden years It’s not dying, it's reached its zenith. Think of AT&T as a giant mature oak tree that has been growing for years. I chose the picture of the oak tree to help illustrate this. So, arguing that AT&T is a “dying dividend growth stock” really doesn’t make any sense, it’s a mature high yield income generator. The yield of 6% is threefold higher than the current yield of the S&P 500 of approximately 2%. AT&T isn’t a dividend growth play, it’s a mature high yield income play. Let’s get something straight right off the bat. Come hell or high water, AT&T will pay the dividend, as we say in Texas.
#At and t near lock haven free#
The quarterly free cash flow required to cover dividend is approximately $2 billion. The current quarterly dividend per share is $0.2775. Furthermore, with a 6% yield to boot, the stock presents a fantastic buying opportunity for prospective dividend and income investors looking to lock in a superior and safe yield. The fact of the matter is, AT&T is actually growing at present. The following are the primary reasons I feel now may be an ideal time to start or increase your position in AT&T ( T). Yet, you can make an educated determination as to when the best time to start/increase a position in a stock may be. Yes, yes, I know you can't time the markets. The unsubstantiated quote was sent in a cable by Twain from London to the press in the United States after his obituary had been mistakenly published, so the story goes. “The reports of my death are greatly exaggerated.” Well, this reminds me of the famous quote by Mark Twain: Once again, I am hearing murmurs from the peanut gallery that AT&T ( NYSE: T) is a dying company and the dividend is in danger of being cut.
Ron and Patty Thomas/E+ via Getty Images What Happened?
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