Shift to 5G will pay off for investors

Article Excerpt

These two leading U.S. telecoms are aggressively expanding their ultrafast 5G (fifth generation) wireless networks. 5G users tend to spend more than current 4G users, and that extra cash flow should support dividend increases over the next several years for investors in both firms. AT&T INC. $16 is a buy. The company (New York symbol T; Income-Growth Portfolio, Utilities sector; Shares outstanding: 7.2 billion; Market cap: $115.2 billion; Dividend yield: 6.9%; Dividend Sustainability Rating: Above Average; www.att.com) is the largest wireless (cellphone) carrier in the U.S., with 203.4 million subscribers. It also has 5.7 million traditional phone customers (in 13 states) and 15.5 million high-speed Internet users. Note—the company also sells wireless services to 20.7 million users in Mexico. AT&T completed the merger of its WarnerMedia business with Discovery Inc. on April 8, 2022, to form Warner Bros. Discovery (Nasdaq symbol WBD). AT&T shareholders now own 71% of Warner Bros. Discovery, while Discovery investors hold the remaining 29%. The company also received $40.4 billion in cash…