AT&T Inc. (NYSE: T) may be thought of as a stodgy widows-and-orphans stock that doesn't offer much prospect for an exciting return.
But how exciting is the idea of receiving more than six times your original investment back in aggregate dividends payments?
If you're a fan of cash flow, that should get your wallet pretty excited.
AT&T Inc. is the second-largest U.S. wireless telecommunications company, serving over 100 million customers.
One can probably see how this could be a lucrative investment over the long haul. Millions of customers already use their services. Meanwhile, mobile data consumption is growing rapidly.
Additionally, AT&T is wrapping up its acquisition of DirecTV (DTV). Acquiring the largest satellite television provider in the U.S. will give AT&T access to a larger subscriber base. With many other services to offer, AT&T plans to bundle services and grow its revenue per subscriber. Of course, the deal also diversifies the revenues.
Their massive network gives AT&T competitive advantages as the business scales. It's incredibly expensive and time consuming to build out a network large enough to service millions of customers in an efficient manner. That means that the major players have secured their position in the market.
For AT&T, the future looks bright. Meanwhile, the reported financial results show a past that's not all that dim either.
Revenue is up from $40.8 billion in 2004 to $128.8 billion in 2013. That's a compound annual growth rate of 13.6%. Of course, there were the game-changing acquisitions of SBC Communications and BellSouth during this time frame.
Not surprising, profits have also been growing nicely. Earnings per share increased from $1.50 to $3.39 during this period. That translates into a compound annual growth rate of 9.48%. Not so stodgy after all.
That growth has allowed the company to reward its shareholders.
The company has increased its dividend for the past 31 consecutive years. Based on its competi
we are? wow what i find shocking is you're dumber than I thought you were and that is almost impossible as I think youre about the dumbest #$%$ I have ver run across on the yahoo threads. Need some proof I have it :
22-Feb-12 05:04 pm
Two out of every three people receiving stock dividend payments are rich, many totally, incredibly rich and should be paying more taxes instead of us soaking the middle class. I'm sick of the deadbeat rich who are unwilling to carry their fair share of the load...
rebel, i must have oilman on ignore for a reason and that's where he is staying :) He is just upset cause he was wrong and for us longs that's a good thing :)
wainmatthew, I am here, I am surprised, pleaseantly so as I am a long who lacks confidence in T. Please T prove me wrong as much as you want :)
echo2165, i can't see what that little boy wrote, he is on my ignore list as treturd and att4 :)
I owned him on INTC thread and I own him here too. I told T holders to look into KMI. I don't push stocks but felt KMI was a good one for div. Rich Kinder made a big announcement in Aug 2014 and I was already in KMP. KMI popped to 42 from 37, back to 34 and here came that little boy to blow smoke about my bad KMI call. He since DELETED the thread as KMI has raised the div 2X and plans to raise it much more thru 2020 and is now above 42 :)
Now KMI has done well, Rich Kinder is on track despite oil decline as KMI is about the transport of oil . The little boy then came here again to crow about INTC going to 37, well now INTC has stumbled (thanks to msft) and the little boy is back with more anger. I own him and he knows it :)
And more on KMI, the 28th (tomorrow) they have an analyst day, I suggest anyone who has time listen to it on their website. Rich Kinder is the real deal and KMI will deliver to 2020, listen and make up your own mind. Market down 291 today, KMI up :)
If he could just fine the banks more, he can provide all things to all people. Isn't that his plan? Less than 2 years. Can't wait to see who he pardons
Tomorrow is the analyst meeting, it will be available on line. A must listen to for any long and certainly all these speculators here, especially the negative ones :(