#7 - AT&T (NYSE:T)
AT&T (T)
Years of Consecutive Dividend Growth: 35 Years (Dividend Aristocrat)
AT&T (NYSE:T) is a stock that can be overlooked if you stay focused on the headwinds. The company is launching a streaming service at a time when that sector is beginning to look saturated. The long-awaited arrival of 5G appears that it will take a little while longer. The company’s investment in DirecTV now looks like more of an anchor than a catalyst.
But AT&T is first and foremost a wireless carrier. And that’s where it makes the majority of its money. The payments it receives from its customers subscriptions is reliable. And many customers will find other ways to save on their budget before allowing their wireless bill to go unpaid.
It’s also why the company has been able to pay out 35 years of increasing dividends. And because it enjoys a virtual duopoly with Verizon (VZ) in the wireless sector, the company’s dividend is among the most secure in the industry.
About AT&T
AT&T, Inc is a holding company, which engages in the provision of telecommunications and technology services. It operates through the Communications and Latin America segments. The Communications segment offers wireless, wireline telecom, and broadband services to businesses and consumers located in the US and businesses globally.
More- Current Price
- $23.74
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $26.11 (10.0% Upside)
Dividends matter. Companies with a solid history of paying, and potentially increasing, its dividend show financial strength. And once a company commits to paying a dividend, it will usually prioritize that dividend even in difficult financial times.
In this difficult economy, many solid companies have to suspend dividends based on circumstances that could not have been foreseen. That makes the financial strength of the companies that are not only continuing to offer dividends, but increase them even more important.
As you can see from this presentation, dividend investing does not mean investing with some of the big tech companies. You won’t be chasing the hot penny stock, or looking to discover the next unicorn stock. In fact many of these businesses are stable, and could be considered boring.
But when the market gets crazy, boring doesn’t look so bad. And the ability of these stocks to put cash in your pocket should not be overlooked.
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