5G demand will power AT&T’s dividend

Article Excerpt

AT&T is using steady cash flow from its wireless subscribers to build its new 5G networks and launch its HBO Max streaming service. Those moves should help it attract more users and generate additional cash for dividends. AT&T INC. $29 is a top pick for 2020. The company (New York symbol T; Income-Growth Dividend Portfolio, Utilities sector; Shares outstanding: 7.3 billion; Market cap: $211.7 billion; Dividend yield: 7.2%; Dividend Sustainability Rating: Highest; www.att.com) is the largest wireless carrier in the U.S., with 169.2 million subscribers. It also has 6.8 million traditional phone customers, 14.0 million high-speed Internet users, and 19.4 million TV customers. As well, AT&T sells wireless and satellite TV services to over 32 million users in Mexico and Latin America. The company last raised its quarterly dividend with the February 2020 payment. Investors now receive $0.52 a share, up 2.0% from $0.51. The new annual rate of $2.08 yields a high 7.2%. The company has increased that annual investor payment for 36 consecutive years. AT&T’s…

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