Stock Analysis: AT&T

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AT&T Inc bears the ticker symbol T, and this is my second mention of T for the new Viking Portfolio. I have selected this company for nearly all of my previous Dog of The Week Portfolios.

The 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 69 million postpaid and 18 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 $19.48 at Tuesday’s market close. In the past year, AT&T’s share price fell by $6.98 or about 26.47%.

If AT&T’s stock trades in the range of $12.00 to $24.00 this next year, its recent $19.48 share price might reach $20.15 by next year. That upside estimate of $0.67 conforms exactly to the median of one-year target estimates from twenty-two analysts covering AT&T for brokers.

T Dividends

AT&T’s most recent Quarterly dividend of $0.2775 equates to  $1.11 annually to cast a yield of 5.7%.

T Returns

Adding the $1.11 annual estimated AT&T dividend to my one-year price upside estimate of $0.67 reveals a $1.78 potential gross gain per share.

At Tuesday’s $19.48 closing price, a little over $1000 would buy 51 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $1.78 gross gain makes a net gain of $1.58 X 51 shares = $80.58 for a 8% net gain including an 5.7% annual dividend yield.

In the next year our $1K investment in shares of AT&T Inc would generate $57.00 in cash dividends. Of course, a single share of AT&T stock at Tuesday's $19.48 price almost 3 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy AT&T shares based on their dividends for 2023. The current dividend from $1K invested is 2.93 times greater than the AT&T single share price. Consider yourself alerted.

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

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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