Updating AT&T

Article Excerpt

AT&T INC. $30 (New York symbol T; Income-Growth Dividend Portfolio, Utilities sector; Shares outstanding: 7.3 billion; Market cap: $219.0 billion; Dividend yield: 6.7%; Dividend Sustainability Rating: Highest; www.att.com) is the largest wireless carrier in the U.S. It also offers traditional phone and satellite TV services. The company last raised its quarterly dividend with the February 2018 payment. Investors now receive $0.50 a share, up 2.0% from $0.49. The new annual rate of $2.00 yields a high 6.7%. In June 2018, the company completed its $103 billion cash-and-stock acquisition of media giant TimeWarner (New York symbol TWX) after a judge ruled against an attempt by the U.S. Department of Justice to block it. As a result of that purchase, AT&T’s revenue in the three months ended September 30, 2018 rose 15.3%, to $45.7 billion from $39.7 billion a year earlier. If you factor costs related to the acquisition and other unusual items, per-share earnings rose 15.3%, to $0.90 from $0.74. Strong demand for wireless services also contributed…