AT&T: How To Benefit From An Investment Despite Stagnant Business Prospects

Aug. 05, 2022 6:00 PM ETAT&T Inc. (T) StockT74 Comments
Frederik Mueller
10.38K Followers

Summary

  • Companies with stagnant business prospects are rarely viewed as attractive investment opportunities.
  • However, if the valuation of a stagnant business is attractive, it can result in successful investments.
  • This could be the case for AT&T, which has a P/E [FWD] Ratio of only 7.82, while competitor Verizon shows a P/E Ratio of 9.41 and T-Mobile of 64.59.
  • I will assume different dividend growth rates for AT&T and show how you can benefit from moderately increasing dividend payments while having a long investment horizon.

AT&T To Merge Warner Media With Discovery

Justin Sullivan

Investment Thesis

  • The Seeking Alpha Quant Ranking shows strong numbers for AT&T (NYSE:T): AT&T is ranked 5th (out of 27) in its industry. Within the sector, AT&T is ranked 38th (out of 251).
  • The HQC Scorecard confirms

This article was written by

10.38K Followers
I specialize in constructing investment portfolios aimed at generating additional income through dividends. My focus lies on identifying companies with significant competitive advantages and strong financials that can provide you with an attractive Dividend Yield and Dividend Growth, thus enabling you to augment your dividend income annually. By combining high Dividend Yield and Dividend Growth companies, you can gradually reduce your dependence on the broader stock market fluctuations.I also assist you in achieving a well-diversified portfolio across various sectors and industries. This diversification strategy aims to minimize portfolio volatility and mitigate risk. I also suggest incorporating companies with a low Beta Factor, which further contributes to reducing the overall risk level of your investment portfolio. My suggested investment portfolios commonly consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction.The selection process for high dividend yield and dividend growth companies within the investment portfolio is meticulously curated. I prioritize the pursuit of total return, encompassing both capital gains and dividends, rather than solely focusing on dividends in isolation. This approach ensures that your portfolio is designed to maximize returns while considering the full spectrum of potential income sources. By leveraging my expertise, you can benefit from a well-crafted investment portfolio that aims to generate extra income through dividends, while reducing risk through diversification, and prioritizing total return.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of T, TMUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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