According to analysts, AT&T (NYSE:T) stock should more than cover its dividend when the company next reports earnings Oct. 26. But in a world where the 30-year government bond yields 1.4%, AT&T stock is down 6.3% from its last earnings report on July 23. This despite a yield that now totals 7.16% per year. That’s higher than Chevron (NYSE:CVX). What’s wrong?
The Debt. What’s wrong is the balance sheet, which showed over $175 billion of debt at the end of June. That’s a debt to equity ratio of .96. Forget the company’s market cap of $207 billion. Its “enterprise value,” the debt and equity combined, is almost $400 billion.
There are reasons to buy AT&T, based largely on new CEO John Stankey undoing much of what Stephenson did. You buy AT&T today for the dividend, and you wait for the reorganization. The present company doesn’t work, but its pieces will work for someone.
Source: InvestorPlace
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
In this article, we discuss 5 best consumer staples dividend stocks to buy now. If you want to read our detailed analysis of the consumer st...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
Dividend stocks cater to investors who want less volatility and stable cash flow. Some dividend stocks offer a combination of respectable yi...
-
I stumbled upon some data a few years back that has altered my investment philosophy. According to data by Ned Davis Research and Hartford F...
-
Following a strong year for the S&P 500 and huge gains for the tech-heavy Nasdaq Composite, it's a lot more difficult to find reason...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.