Investors have been tracking AT&T’s progress toward spinning off its media assets, and they’ve also been watching with interest as its price has slid down. This article will bring you up to date on where AT&T is as a company and as a possible investment going forward.
This company has an excellent business model with sustainable competitive advantages. It has good financials, excellent cash flow and a safe, growing dividend. On top of all this, the stock looks about 10% undervalued right now.
A recent surprise announcement by AT&T has produced a spectrum of reactions, interpretations and forecasts. Since I own AT&T as a dividend growth stock, its dividend and its future in my portfolios will be the subject of this special edition article.
This month I’m featuring a dividend ETF that seems to come closest to accomplishing what dividend growth investors typically do, as highlighted by its 10-year streak of higher annual dividends. In other words, this dividend ETF comes closest to matching the way I pick stocks for my own portfolios.
I own this stock in my Dividend Growth Portfolio (DGP) and have been building up my position since late last year. In short, this stock is trading far below its fair price — making right now a potential good time to buy it.