Wednesday, April 23, 2014

AT&T (T) - Starting a Position Today

AT&T reported decent quarterly financials today, but is off more than 3% as of this writing.  While not a fast grower, they pay better than a 5% dividend, have an S&P credit rating of A-, and are projected to grow between 5% and 6% for the next five years.

This is a high grade, safe stock.  At at today's price, its nicely undervalued.

The stock is trading just above $35 today, which is a bit lower than the black endpoint above.  With a blended PE of around 11.5 today, its well below the average PE over the past five years.

I think of ATT as a utility, offering a product that everyone "needs" and uses daily.  Regarding the dividend, they've been raising it reliably for 30 years, and over the last 10 its averaging around a 4% increase every year, much like a utility.

There are dozens of articles on SA about T, here are a few recent ones:

Limit order executed at $35.17, for a 1/3 size position in the portfolio.



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