AT&T: Attractive opportunity in telecommunications.
Undervalued investment:
- Shares of $T+1.7% have not been very popular with investors in recent years.
- The current valuation is attractive, trading at 10 times the company's trailing earnings.
High dividend yield:
- Shares of $T+1.7% provide a dividend yield of 6.1%, which is very attractive to investors looking for regular income.
- The payout ratio based on earnings is around 60%, indicating stability and security of the dividend.
Growing free cash flow:
- Free cash flow $T+1.7% is growing, indicating the improving financial health of the company.
- In the first three months of this year, free cash flow was $2.1 billion higher than the prior year.
Positive Outlook:
- The company is raising its outlook for free cash flow, which is encouraging for future investments and distributions to shareholders.
- There is a possibility that $T+1.7% will resume dividend increases given the strong financial results.
Share price growth potential:
- Shares of $T+1.7% are up 8% this year, with potential for further growth, especially if interest rates are reduced.
- The stock is suitable for long-term investors looking for a stable and growing yield.
AT&T represents an attractive investment opportunity due to its high dividend yield, growing free cash flow, and stable financial health. For investors looking for a long-term, stable stock with growth potential, AT&T is an excellent choice.
It could be interesting company, but like Christopher, I'm worried about whether he can dig himself out of it.
The stock is down a lot, yes, but the question is whether it can climb out of this abyss. The amount of debt it now has exceeds its total market capitalization. I'm not really into this sector.