Background: AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the U.S. and around the world. AT&T trades an average of 24 million shares per day with a market cap of $198 billion.
52-Week Range: $27.41 to $38.58Book Value: $17.69 Earnings Payout Percentage: 73% After three solid weeks of discounting in share price, Ma Bell remains in a bull trend, albeit one that is now on sale. After falling 6.3%, and testing the 200-day moving average, the forward price-to-earnings multiple is near a very conservative 13. The payout percentage is elevated and a concern for ongoing dividends, but next year's earnings are expected at $2.57 per share, lowering the payout ratio to less than 68%. I consider 68% a very high number, and as a result, I don't feel the need to pound on the table and declare this the ultimate buy. I also anticipate the massive $1.76 in annual dividends isn't likely to increase soon, but hey, it's yielding 5.1%, so it doesn't have to increase soon. It's already "increased". AT&T gained 18% in the last year, and while Ma Bell may not be my favorite in this group, it certainly earned its place here. Forget about finding any short-sellers. Short interest is so low I only include it to demonstrate the smart money is not betting against this company. Just 0.8% of the float is short based on the last reported numbers. T Payout Ratio TTM data by YCharts
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts