12-29-2020, 10:40 AM
(12-29-2020, 02:33 AM)crimsonghost747 Wrote: I think T is a good bet at these levels, especially when everything else is super expensive. That dividend is monstrous and while they have a tendency to screw up most things, at least on some level the turnaround seems to be happening. (debt is being reduced. Cash flows are increasing. Dividend payout ratios are looking better from what I can remember.)
It won't be a big winner anytime soon but I think it's worth holding for that dividend. I have enough already so I'm not adding but I'm pretty sure all of my buys in recent years have been between $27 and $29.
HBO Max, despite the initial rollout issues, is going to be a powerhouse in streaming. The Warner Media content library is huge, and HBO has a long history of creating marquee programming. Netflix is losing content at a rapid pace, as media companies like T aim to keep their content in-house for their own streaming services.
I'm guessing that within the next few years, T will roll AT&T TV (digital streaming version of U-Verse cable television, with a proprietary box like Roku) into HBO Max, as a premium content tier. Too many intra-company brands in that space at the moment (DirecTV, U-Verse, AT&T TV, AT&T TV Now, HBO Max), which would benefit to streamlining into a single service and unitary branding. Would also be great to see T negotiate something like NFL Sunday Ticket as a premium add-on for HBO Max.
The relatively stable cash flows from the cell phone service should continue, as media/streaming revenues ramp up over the next several years. A run to $40 could be in the cards when the engine starts running, similar to what happened during the initial iPhone days. I'll collect the dividend in the meantime.