Recent Buy – AT&T (Telecom)

On November 23rd I purchased 35 shares of AT&T Inc. for 29,60 $ per share. The total cost of the purchase was 913 €. I didn’t have to pay commission this time, because my brokerage has a commission free campaign.

Overview

AT&T Inc. is a modern media holding company. It consists of four businesses which are:

  • Communications
  • Media business
  • International
  • Advertising and Analytics Business.

AT&T Inc. recently completed it’s purchase of Time Warner, which was a huge boost for their Media business. This acquisition also increased their net debt to over 180 billion dollars.

About The Stock

This giant telecom has been performing poorly for a while now. It has declined by about 24 % from the 52 week high. As a result stock is trading at very low valuation and has a record high dividend yield.

Some quick stats about AT&T:

  • Estimated EPS: 3,51 $
  • P/E Ratio: 8,4
  • Beta: 0,46
  • Yield: Pays a quarterly dividend of 0,50 $ per share which equals 6,76 % yield.
  • Payout ratio: Dividend payout ratio is 57 %, which doesn’t sound too bad either.
  • Dividend History: AT&T is a dividend aristocrat with 34 consecutive years of dividend growth.
  • Dividend Growth Rate: Average dividend growth rate for the past five years is 2,2 %, which leaves a plenty of room for improvement. In my opinion the sky high yield compensates slow growth rate for now.

Summary

AT&T Inc. was already part of my portfolio and I now hold a total of 100 shares. With current yield it increases my annual passive income by 61,7 €. After the purchase weight of AT&T Inc. is 4,1 % of my portfolio.

Have you purchased any stocks this month? What do you think about this buy? Please share your thoughts in the comment section below!

Thanks for reading.

 

4 thoughts on “Recent Buy – AT&T (Telecom)

  1. BrokeInvestor Reply

    Hey Dividend Deluge,
    First time visiting, it’s nice to see a new face in the community! πŸ™‚
    Great addition to your portfolio – I think the price of T is really attractive at the moment. I have 19 shares of T as well and it’s actually one of the positions which is down since I purchased it (-11%). However, it is just slightly in the green if I include dividends πŸ™‚
    Good luck with your investments!
    BI

    • Dividend Deluge Post authorReply

      I bought my first AT&T shares in July and they are down about 10 % too. I think it’s a good time to add some more shares after recent market volatility.

      Thanks for visiting!

    • Dividend Deluge Post authorReply

      They really have a huge amount of debt. Hopefully they will start reducing it in the coming years instead of purchasing more companies!

      Thanks for visiting!

Leave a Reply

Your email address will not be published. Required fields are marked *