10-18-2013, 06:08 PM
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?
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?