AT&T Inc, ticker T, is a large-cap telecom services company in the communication services business sector. It is the first of five communication services candidates vying for the second slot in my Viking folio. This is not my first report on AT&T. I have discussed T previously and I most recently selected it as my 3rd pick for Viital, my seventh, portfolio.

Wireless business contributes about two thirds of AT&T’s revenue following the spinoff of WarnerMedia.

The firm is the third-largest U.S. wireless carrier, connecting 68 million postpaid and 17 million prepaid phone customers.

Fixed-line enterprise services, which account for about 20% of revenue, include internet access, private networking, security, voice, and wholesale network capacity.

Residential fixed-line services, about 10% of revenue, primarily consist of broadband internet access service.

AT&T also has a sizable presence in Mexico, serving 21 million customers, but this business only accounts for 2% of revenue.

The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.

The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005.

AT&T Inc. was incorporated in 1983 and is headquartered in Dallas, Texas.

Three key data points gauge AT&T Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

T Price

AT&T’s price per share was $14.94 at Friday’s market close. T’s share price fell by $5.26 or about 26% in the past year.

If AT&T’s stock trades in the range of $12.00 to $24.00 this next year, its recent $14.94 share price might reach $20.00 by next year. My upside increase estimate of $5.06 is $1.43 under the average price upside forecast from 24 analysts tracking the stock for brokerage houses.

T Dividends

AT&T’s most recently declared quarterly dividend of $0.2775 per share makes an annual dividend of $1.11 and casts a yield of 7.43%.

T Returns

Adding the $1.11 annual AT&T dividend to my one-year price upside estimate of $5.06 shows a $6.17 potential gross gain per share.

At today’s $14.94 closing price, a little under $1000 would buy 67 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $5.06 gross gain per share results in a net gain of $4.91 X 67 shares = $328.97 for a 32.8% net gain including a 7.43% annual yield.

In a year our $1K investment in shares of AT&T Inc could generate $74.30 in cash dividends. Of course, a single share of T stock at today's $14.94 price is almost one fifth of the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is good time to buy T shares based on their dividends for the year 2022. The dividend from $1K invested is 4.97 times more than yesterday’s single share price. Consider yourself alerted. Now is the time.   

All of the estimates above are speculation based on the past history of AT&T Inc. Only time and money invested in this stock will determine its market value

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