Price To Book: 2
Forward Estimated Earnings Payout Percentage: 53%
AT&T (T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world.
I like AT&T and Verizon (VZ) as dividend plays and they usually are neck-in-neck as finalists. Verizon rocketed higher after highlighting it in A Pair of Hot Dividend-Paying Stocks to Buy Now but has since cooled. AT&T's chart pattern is unquestionably the stronger of the two and higher yield takes it over the top.
The company currently pays $1.84 per share in dividends for a yield of 5.2%. Meanwhile, in the last month alone, the stock climbed almost 10%. I don't care to chase stocks, but Tuesday is the ex-dividend date and investors that buy on or before Monday are able to capture the next payment.
As I write this, AT&T has nine buy recommendations out of 32 analysts covering the company, 21 holds, and two recommend selling. AT&T is less than a dollar from the 52-week high made in November, while the average analyst target price is $35.58. Expect targets to increase at the rate the shares are climbing.
The short interest is slightly elevated, albeit, not yet enough to make me want to worry about it. Short interest is 3.8%. As long as it stays under 4%, I won't give it much thought.
At the time of publication, Weinstein had no positions in securities mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV