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+--- Thread: AT&T (/showthread.php?tid=263)
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AT&T - DividendGarden - 10-16-2013
New article is up. This is probably my last article for a while. I have been working on these for the past week or two while I have had some spare time. I enjoy putting these together, so I would appreciate any helpful critique or feedback.
http://seekingalpha.com/article/1747812-at-ts-hidden-source-of-value
Thanks!
DividendGarden
RE: AT&T - hendi_alex - 10-16-2013
I've been watching T and have decided to put in a GTC for a few shares if the price dips about 50 cents.
RE: AT&T - Kerim - 10-18-2013
I haven't updated T in my spreadsheets in a while. I'll try to do that later today and post some thoughts.
RE: AT&T - Kerim - 10-18-2013
It is a good article, Dividend Garden -- thanks.
The fact that earnings seem to be back on track is the most compelling thing for me. As you point out, the forward p/e is so much lower than the trailing p/e. This could get the share price moving up again. But more importantly for us, with the payout ratio comfortably back under 100 percent, maybe we can imagine the day that T gives us more than a 4 cent dividend raise year after year after year. For so long now, the tradeoff with T has been high current yield and almost no dividend growth.
I bought all of my T in 2011 in the high $20s. I doubt I'll add at these prices and while the dividend growth is still so anemic. But your article is a good reminder to pay closer attention to it in coming months; T could really be upping its game again as a dividend growth stock.
I'm curious what makes you suspect that we're in for a positive earnings surprise from T this quarter?
RE: AT&T - fiveoh - 10-24-2013
I'm looking closely at picking up some T today after the earnings related drop. However, I kind of feel like I'm chasing yield here and I'm not sure about growth going forward. I use uverse at home and like it and everyone needs internet and cell phones... but their earnings chart makes me wonder.
Edit: Went ahead and bought a partial position(1/3) and will buy more if it dips near 33. Replaced a large chunk of intc I sold off a few months ago, so overall portfolio yield increased.
RE: AT&T - hendi_alex - 12-13-2013
I added some T this morning and immediately sold April $34 calls for 94 cents. That represents about 2x dividends for the period, effectively doubling the yield to around 10%. If called, the small c.g. will pay for all trading costs plus will boost the cash flow generated by a touch more. I'm not interested in T as a long term position, so this covered call play is taking place in my more active account.
RE: AT&T - fiveoh - 12-13-2013
T bumped their div by a penny again today. 2.2% increase.
RE: AT&T - ChadR - 12-13-2013
I was hoping for a penny and a half. I thought they'd have a 3% raise.
RE: AT&T - fiveoh - 12-13-2013
They've been doing a penny for a few years now. I think they are trying to conserve cash for a big deal right now.... just my speculation.
RE: AT&T - rnsmth - 12-15-2013
I used to own T but sold it due to its very low dividend growth rate. I now hold BCE and RCI in the telecom space.
I used to have VOD, but sold it soon after VZ's offer for VOD's Verizon Wireless share
RE: AT&T - Dividend Watcher - 12-21-2013
I've owned T for a couple years now. Trimmed a little a few months ago and added that to some cash to get into RCI since I wanted a little more diversity and growth in the telecom sector.
When I first purchased it, my thought was to reinvest the dividends for a few years and then use it as an ATM to produce cash for other purchases. I'm a little disappointed by the dividend growth. I'm thinking they will get back to a little higher DGR if they don't waste it on ill-conceived acquisitions. The T-Mobile fiasco was a big hit to cash flow and can't believe they thought they'd get that past the regulators.
We hold VOD in my wife's portfolio and I'm still trying to figure out the best course of action. We'll hold it until after the next dividend since it's already ex-dividend and then decide. If T does make an offer for VOD, that just may make us exit both positions.
RE: AT&T - Kerim - 12-21-2013
Yeah, T doesn't seem likely to be a great source of dividend growth anytime in the near future. But the yield is certainly solid at around 5.4 percent.
I've written a couple of times before about what I like to call "yield diversity." Of course it would be great if we could find a bunch of high-yielding stocks that also have prospects for big dividend growth going forward. But those companies are few and far between. LMT was one, about a year ago, but not quite as much after this year's big run-up in price. So we're left assembling portfolios of: (1) high yield, but low dividend growth rate, (2) low yield, but higher dividend growth rate; and (3) moderate yield and moderate dividend growth rate. I like to have a balance of all three, and T falls nicely into category (1).