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
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
If you are retired, you have likely shifted from building your nest egg to living off your assets. That means you probably gravitate toward ...
-
REITs are reporting higher revenue and earnings so far for the quarter. But one of the specific metrics for profitability comes from the rat...
0 comments
Post a Comment
Post a Comment