#3 - AT&T (NYSE:T)
AT&T (NYSE: T) - With a dividend yield of around 6 percent, it’s hard to argue with the logic of considering AT&T in a retirement portfolio. It is a dividend aristocrat that is currently showing signs of being severely undervalued. It has a forward P/E ratio in the single digits (around 6.6), but analysts are still projecting approximately 15% growth for the year.
The stock has faced some challenges for sure. They have ranged from infrastructure concerns centered around the company’s need to upgrade to 5G technology, competition not only from other wireless carriers but from a nation moving away from cable television providers, and existential concerns such as the company’s association with a former attorney of President Trump, Michael Cohen.
But the storm clouds are passing, and value investors are seeing rays of sunshine. For one, AT&T is one of only a handful of wireless providers that will be able to take advantage of 5G technology, so that is one path to profit. Their recent purchase of DirectTV gives them both satellite and streaming TV service options that can make their bundled services more appealing and the stock is attractively priced.
In the final analysis, while the company still faces some challenges, the stock should be well positioned for growth and continued income via its dividend offering.
About AT&T
AT&T Inc provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores.
Read More - Current Price
- $23.18
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 11 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $23.40 (0.9% Upside)
