With Great Dividends, Is AT&T Stock (T) a Buy in 2020?

TL;DR

AT&T stock has a high dividend, but the stock has been stagnant. The company has shown decent revenue and profit growth, but there are concerns about their current liabilities and share count.

Transcript

hey everybody it's seth and ball for everything money channel on this episode we talk about a t stock whether you use them as your phone carrier or verizon my mother's worked there for 50 years i've had this stock it's stagnant it has a high dividend what do all this mean what does all this mean and what does it mean to you as a potential stock buy... Read More

Key Insights

• ❓ AT&T's revenue growth has been decent, but not exceptional.
• ☠️ The company has consistently made profits, although the growth rate is not consistent.
• 🥶 Increasing free cash flow indicates the company's ability to generate excess cash.
• ✋ The high dividend yield is attractive for income-focused investors.
• 🤨 The increasing share count raises concerns about shareholder value.
• 😘 The low profit margin suggests potential challenges for the company's profitability.
• 😘 The stock's price-to-earnings ratio is relatively low, which may indicate an undervalued stock.

Questions & Answers

Q: What is the current dividend yield of AT&T stock?

AT&T has a dividend yield of around 6.5%, which is one of the highest in the market.

Q: Why has the stock price of AT&T been stagnant?

There could be various reasons for the stagnant stock price, including market conditions, lack of growth potential, and competition from other telecom companies.

Q: Is the increasing share count a concern for investors?

Yes, the increasing share count indicates dilution for existing shareholders, which means they have a smaller ownership stake in the company's profits.

Q: What is the reason behind AT&T's low profit margin?

Service-based businesses like AT&T typically have lower profit margins compared to product-based companies. However, further investigation is needed to understand the specific factors influencing AT&T's profit margin.

Summary & Key Takeaways

• AT&T has shown consistent revenue growth over the past five years, although the growth rate is not remarkable.

• Profit growth has been somewhat inconsistent, but the company has still made a significant amount of money.

• Free cash flow has been consistently increasing, which is a positive sign for the company's financial health.