#4 - AT&T (NYSE:T)
AT&T (T) - You can’t have a discussion about investing in 2020 without talking about 5G. But honestly, that’s not the reason to consider AT&T (NYSE:T) as a great dividend stock. AT&T has a massive dividend yield of over 5.5%. The company can support the dividend because it has a wireless subscriber base of over 150 million consumers.
Wireless communications make up the bulk of AT&T’s revenue and earnings. And while that isn’t changing, it may be getting supplemented now that it is entering the streaming space now that it has completed its merger with Time-Warner. Some analysts are concerned that AT&T may be late to the streaming game and others point to DirecTV as a dying business model. But neither of those issues should affect the company’s ability to generate free cash flow. This means AT&T should be able to pay down the debt from these acquisitions while still providing and increasing its dividend, which the company has done for 35 years.
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 about AT&T- Current Price
- $26.74
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $27.21 (1.8% Upside)
