Background: AT&T 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. Among their offerings are the world's most advanced IP-based business communications services, the nation's fastest 3G network and the best wireless coverage worldwide, and the nation's leading high speed Internet access and voice services.
52-Week Range: $29.02 to $38.58
Price to Book: 2Earnings Payout Percentage: 70% Ma Bell hasn't always been one of my favorite stocks. For wireless providers, Sprint (S) has been the stock I was most bullish toward. Sprint has doubled in price since I began writing about it. AT&T has struggled with customer service for a long time, and depended on its massive size to carry it through the day. To be fair, some of my customer service opinion with AT&T is a result of my own experiences, but it only colors it, not controls it. Having an exclusive contract with Apple (AAPL) didn't do AT&T any favors in the long run. It only allowed the "it's my way or the highway" mentality to flourish longer than it should have.
AT&T is making the right moves, and the results can be seen in the earnings reports for the past three quarters. A year ago, they missed by a penny, but each quarter since then they beat by about 5% each time. Also at about 5% is the yield of the dividend that continues to increase on a regular basis. The shares have move higher 16% over the last 52 weeks. Analysts are calling for a price target of $36.52. The last reported short interest is paltry and without reason to consider it a meaningful influence at only 1.1% of the average trading float. T Payout Ratio TTM data by YCharts
At the time of publication, the author held no positions in any of the stocks mentioned.
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