On the surface, AT&T (NYSE: T) may look like a compelling investment. It is one of the largest telecommunications companies in the world, and T stock has a forward price-earnings ratio of under nine. AT&T even has a 6.2% dividend yield, one of the highest among U.S. mega-cap stocks. But a closer look at AT&T reveals a company and a stock that are in a tough spot.
The first place to look when assessing AT&T’s situation is its businesses. First and foremost, AT&T’s DirecTV premium cable TV service is in major trouble. In the first quarter alone, DirecTV lost 661,000 customers,representing an 11% annualized decline. Nearly every business gets hit hard by recessions, but Abeyta, the former hedge-fund manager, says AT&T may be particularly exposed during the next downturn. “In a recession, I think the cord-cutting (especially at high-priced DirecTV) will accelerate like nothing you have ever seen,” he says.
Source: InvestorPlace
Related Articles:
- 4 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 2.7%
- Finding Low Risk Dividend Stocks
- 10 Fun Facts That You Might Not Know About Microsoft
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Real value comes from holding on to your stocks for years -- decades is best -- and watching as their businesses grow and appreciate. It'...
-
In this article we discuss the 5 Best Dividend Stocks to Buy According to Billionaire Ken Fisher. 5.) British American Tobacco p.l.c. (NYSE:...
-
Investing for retirement requires a different approach from merely betting on growth or value stocks. The strategy for fixed-income is to bu...
-
On Monday, AT&T (NYSE:T) confirmed that it will spin off its WarnerMedia entertainment unit and merge it with Discovery. While this will...
-
High dividend stocks included on our list had a number of criteria to meet — all stocks satisfied a minimum dividend yield requirement, have...
-
Earlier generations have favored dividend investing because generally higher yields were on offer then. Today, though, some investors have b...
-
One of our favorite areas to find blue-chip dividend stocks is in the utility sector. Companies in this space provide electricity, gas and w...
-
It’s safe to say that one of the biggest concerns that economists and investors have on their minds at this time is inflation. Regardless of...
-
Business Development Companies, known as BDCs, offer the retail investor exposure to privately-held firms, which often are funded by venture...
-
One factor that can make a big difference is competitive advantage and leadership in a given industry. In general, larger companies with glo...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.