Today I decided add to my relatively small position in AT&T. Price fell nearly 4% today and I was able to pick up an additional 22 shares @ 33.48, near the day's low. Here the details of the purchase along with the company profile (for the few who may not be familiar with the company).
Purchased: 22 shares x $33.48 = $736.56 (+$4.95 commission)
Dividend Income: $43.12 ($0.49/sh paid quarterly in Feb, May, Aug, and Nov.)
P/E ratio: 16.4 (vs. S&P @ 22)
Debt to capital < 50%: Yes, ~46%
Interest coverage ratio of at least 3:1: Yes, 4.9x
S&P and/or Moody's credit rating of BBB+/Baa1 or better: Yes, BBB+
Current dividend yield > 1.5x S&P yield: Yes, 5.85% vs. S&P @ 2.0%
Payout ratio < 60% (or <85% for utilities): No, 91%
Comments: EPS growth in the near terms will likely to be low single digits. The latest T earnings report is available here.
Company Profile
AT&T Inc. provides telecommunications and digital entertainment services. The company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility, and International. The Business Solutions segment offers wireless, fixed strategic, legacy voice and data, wireless equipment, and other services to business, governmental, and wholesale customers, as well as individual subscribers. The Entertainment Group segment provides video entertainment and audio programming channels to approximately 25.3 million subscribers; broadband and Internet services to 12.9 million residential subscribers; local and long-distance voice services to residential customers, as well as DSL Internet access services; and voice services over IP-based technology, and technical support and other customer service functions and equipment. The Consumer Mobility segment offers wireless services to consumers, and wireless wholesale and resale subscribers, such as long-distance and roaming services. This segment provides postpaid and prepaid wireless voice and data communications services; consulting, advertising, and application and co-location services; and sells a variety of handsets, wirelessly enabled computers, and personal computer wireless data cards through company-owned stores, agents, or third-party retail stores, as well as accessories, such as carrying cases, hands-free devices, and other items. The International segment offers digital television services, including local and international digital-quality video entertainment and audio programming under the DIRECTV and SKY brands throughout Latin America. This segment also provides postpaid and prepaid wireless services to approximately 12.0 million subscribers under the AT&T and Unefon brands; and sells a range of handsets. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.
Purchased: 22 shares x $33.48 = $736.56 (+$4.95 commission)
Dividend Income: $43.12 ($0.49/sh paid quarterly in Feb, May, Aug, and Nov.)
P/E ratio: 16.4 (vs. S&P @ 22)
Debt to capital < 50%: Yes, ~46%
Interest coverage ratio of at least 3:1: Yes, 4.9x
S&P and/or Moody's credit rating of BBB+/Baa1 or better: Yes, BBB+
Current dividend yield > 1.5x S&P yield: Yes, 5.85% vs. S&P @ 2.0%
Payout ratio < 60% (or <85% for utilities): No, 91%
Comments: EPS growth in the near terms will likely to be low single digits. The latest T earnings report is available here.
Company Profile
AT&T Inc. provides telecommunications and digital entertainment services. The company operates through four segments: Business Solutions, Entertainment Group, Consumer Mobility, and International. The Business Solutions segment offers wireless, fixed strategic, legacy voice and data, wireless equipment, and other services to business, governmental, and wholesale customers, as well as individual subscribers. The Entertainment Group segment provides video entertainment and audio programming channels to approximately 25.3 million subscribers; broadband and Internet services to 12.9 million residential subscribers; local and long-distance voice services to residential customers, as well as DSL Internet access services; and voice services over IP-based technology, and technical support and other customer service functions and equipment. The Consumer Mobility segment offers wireless services to consumers, and wireless wholesale and resale subscribers, such as long-distance and roaming services. This segment provides postpaid and prepaid wireless voice and data communications services; consulting, advertising, and application and co-location services; and sells a variety of handsets, wirelessly enabled computers, and personal computer wireless data cards through company-owned stores, agents, or third-party retail stores, as well as accessories, such as carrying cases, hands-free devices, and other items. The International segment offers digital television services, including local and international digital-quality video entertainment and audio programming under the DIRECTV and SKY brands throughout Latin America. This segment also provides postpaid and prepaid wireless services to approximately 12.0 million subscribers under the AT&T and Unefon brands; and sells a range of handsets. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.
Great buy. I've owned this stock for several years and the dividend don't disappoint. I just bought 100 more share last month.
ReplyDeleteInvestment Hunting, thanks for stopping by and commenting. T remains a focus of mine for additional capital in the near term as it is 1 of a handful of stocks that I see trading at a reasonable valuation along with a few others in the consumer staples/defensive sector.
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