Dividends4Life: 5 Reasons Investing in T Stock Is Your Safest Bet

With such an unsteady market, it’s hard to feel safe leaving your money anywhere. But if you’re looking for a guarantee that your money will be secure, it’s hard to do better than AT&T Inc. (NYSE:T). In fact, not only is T stock a safe bet — it’s actually starting to show signs of life after an initial dip following its fourth-quarter earnings. Yes, T stock is underperforming its peers — T stock is barely in the black for the year to date, just behind Verizon Communications Inc. (NYSE:VZ) and miles away from the respective 6% and 15% gains of Sprint Corp (NYSE:S) and T-Mobile US Inc (NYSE:TMUS).

But all that matters for new money is where AT&T’s headed. So let’s look at why AT&T is a solid value stock to invest in for 2015: T stock offers a killer dividend: AT&T offers a 5.6% dividend yield, making it the highest-yielding dividend stock in the Dow Jones Industrial Average. AT&T stock is priced right: T stock is reasonably valued at a forward price-to-earnings ratio of 13, which is well under the S&P 500′s current forward P/E of 17. Earnings beat expectations: The fourth quarter is the least profitable for wireless companies, according to Thomas Gyrta of the Wall Street Journal, but AT&T still came out strong. AT&T is investing wisely: What money AT&T isn’t using on dividends is going to smart investments, such as expanding its market to Mexico. Consumer strategies are working: AT&T saw subscriber growth thanks to its Next program and Mobile Share Value program.

Source: InvestorPlace

Related Articles:
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
- 5 Lessons Learned About Investing In Dividend Growth Stocks
- 6 High-Yielding Mega-Cap Stocks
- Dividend Investors Should Focus On Stocks, Not The Market

Click here to have future posts delivered to you for free!



Post a Comment


Latest From Dividend Growth Stocks

Popular Posts Last 30 Days