5G will help them thrive again

Article Excerpt

AT&T and Verizon have now launched their ultrafast 5G wireless networks. That will spur demand, revenue, dividends—and enhance their already-strong outlooks. Meantime, COVID-19 will continue to hurt them as well as help them: while pandemic lockdowns made it harder to sign up new customers, remote working has lifted demand for home Internet and streaming. AT&T INC. $30 is a buy. The company (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 7.1 billion; Market cap: $213.0 billion; Price-to-sales ratio: 1.2; Dividend yield: 6.9%; TSINetwork Rating: Average; www.att.com) is the largest wireless carrier in the U.S., with 171.4 million subscribers. It also has 6.6 million traditional phone customers, 13.9 million high-speed Internet users, and 18.4 million TV customers. As well, AT&T sells wireless and satellite TV services to over 28 million users in Mexico and Latin America. AT&T’s revenue rose 11.6%, from $146.8 billion in 2015 to $163.8 billion in 2016. That gain was mainly because the company purchased satellite TV operator DirecTV in July 2015…

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