Investors can count on AT&T’s dividend

Article Excerpt

Despite higher Internet use as people stay at home during the COVID-19 pandemic, the sharp rise in unemployment could hurt demand for AT&T’s services. However, many of its subscribers are signed to long-term contracts, which cuts its risk—as does the rising demand for the company’s streaming content. The recent drop in interest rates also enhances the appeal of AT&T’s already dependable dividend for investors. AT&T INC. $29 is a buy. The company (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 7.1 billion; Market cap: $205.9 billion; Price-to-sales ratio: 1.2; Dividend yield: 7.2%; TSINetwork Rating: Average; 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. AT&T’s revenue rose 11.6%, from $146.8 billion in 2015 to $163.8 billion in 2016. That gain was mainly…