Earlier in January I purchased my first shares in 2019. I used around $1.200 to purchase 42 shares in AT&T (ticker symbol: T) for a price of $28.65. This will add around €75 to my annual forward dividend income.
My reasoning is as follows:
My reasoning is as follows:
- T seemed undervalued based on a PE-ratio, compared to earlier years.
- T's yield at the time of my purchase was monstrous. There's no need for high growth with a yield of 7,1%. T's recent dividend growth is muted but coupled with a historically high yield this seems fine.
- Major, recent acquisitions of T are TimeWarner for $85 billion (in 2016) and DirectTV for $48 billion (in 2015). Hopefully this will provide top line growth and a strengthening of AT&T's position in the content space.
- Its current debt leven is worring, but muted dividend growth combined with some asset sales should provide enough wiggle room in order to reduce debt levels.
- Finally, I had no exposure towards telecommunications in my dividend portfolio. The addition of T seems logical from that perspective.
What do you think of my purchase of T? Did you recently purchased shares of T?
Great buy and long term hold candidate. Own shares myself. To lock in 7% on today’s at&t is too good to pass up. High debt but tons of revenue.
ReplyDeleteHi Steve-O, agreed! Nice to hear from a fellow shareholder :-)
DeleteI'm very tempted to pick up some more shares of T here. It's just too tempting.
ReplyDeleteThe stock gained some ground in the past three weeks, but it still looks nice.
DeleteI added T recently around $27/share. Anything below $30/share is excellent in my book. The yield is great and the company is aggressively paying down their debt. It'll take some time for the merged company to materialize, but I think we will really be happy that we added stock at these levels years from now.
ReplyDeleteBert