Tue, Apr. 21, 9:53 PM
- AT&T (NYSE:T) reports Q1 earnings tomorrow with its share price almost entirely unchanged from three years ago -- and having slipped about 3% a year (on average) since the summer 2007 launch of the iPhone, exclusively on its network.
- That healthy dividend yield of 5.7%, you say? Even including payouts, the company's annualized return trails the S&P 500 by four points since 2007, Spencer Jakab notes.
- On the positive side, some heavy spending on infrastructure and Mexico expansion should be wrapping this year, and a decline in phone subsidies is taking some pressure off ... but there's still the price war. And stock buybacks that used to boost earnings growth fell to zero in Q4, he notes.
- AT&T reports after the close Wednesday; analysts expect it to post an EPS of $0.61 on revenues of $32.76B (down slightly from Q4's $34.44B) and EBITDA of $10.25B (up from Q4's $9.4B).
- Earnings Center
- Related: 2 Reasons AT&T Is The Better Dividend Investment Than Verizon (Apr. 21 2015)
- Related: AT&T Clearance Sale Going On Now (Apr. 17 2015)
Fri, Apr. 17, 3:40 PM
- AT&T (NYSE:T) is a dividend stalwart, yielding 5.7%, but Morningstar DividendInvestor Editor Josh Peters dropped it from his model portfolio in favor of lower-yielding Verizon (NYSE:VZ).
- He's willing to swap for Verizon's 4.5% yield because the "quality, the safety of the dividend, and the growth of the dividend and the total return it will drive are superior."
- He lost some patience with AT&T's wandering outside of core business rather than sticking to its knitting and growing the dividend faster than 2%. Verizon is focused on U.S. wireless with better capital allocation, he says.
- Coverage plays a part as well: "Verizon is covering its dividend 1.5 times with free cash flow. AT&T is just barely covering its dividend now with free cash."
- Josh Peters video interview
Fri, Mar. 27, 2:14 PM
Wed, Jan. 28, 1:18 PM
- AT&T (NYSE:T) is up 1% today after meeting EPS estimates lowered by a mobile price war -- while many investors looked past revenue growth and talk of business diversification to maintaining the company's high dividend yield.
- The company committed to a lower capex of about $18B for 2015, and it notes a reduction in capex will bring a reduced trailing expense that will help with margins as well as free cash flow.
- AT&T raised its quarterly dividend to $0.47 in December, good for a 5.7% forward yield -- which looks better if interest rates remain low or go lower.
- AT&T "represents a tug-of-war between fundamental investors vs. income-oriented investors," says Morgan Stanley's Simon Flannery. "With the 10-year treasury bond at around 1.8%, AT&T is the highest yield in the Dow Jones."
- New guidance is likely to come after the DirecTV (NASDAQ:DTV) acquisition closes sometime in H1 2015.
- Previously: AT&T sees "continued" revenue growth and expanding margins (Jan. 27 2015)
Dec. 19, 2014, 1:34 PM
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Mar. 28, 2014, 2:02 PM
Dec. 13, 2013, 1:53 PM
Sep. 27, 2013, 2:14 PM
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Apr. 1, 2013, 9:55 AM
Mar. 31, 2013, 11:33 AMWhat makes a good share buyback? Barron's cites four factors: i) Shares are in a downtrend. ii) It's a long-term strategy and not a short-term fix ( = >1% share count reduction/quarter). iii) Shares are cheap based on price-to-book. iv) The company has a rising dividend. The stocks that pass the test? Wellpoint (WLP), Seagate (STX), Western Union (WU) and AT&T (T). | 31 Comments
Nov. 7, 2012, 8:54 AM
Sep. 28, 2012, 1:48 PM
T vs. ETF Alternatives
AT&T Inc, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the United States and internationally. The Company has three reportable segments: Wireless, Wireline, and Other.
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