The wireless business contributes nearly 70% of AT&T’s revenue. (T) is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers.Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity.Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers.AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm has been holding a 70% equity stake in satellite television provider DirecTV but has not consolidated this business into its financial statements.The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005.AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.Three key data points gauge T or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.
T PriceOver the past year, T share price rose 48.8% from $14.36 to $21.37 as of Monday’s market close.In the past 10 years the company’s share price has never been less than $13.45 nor higher than $32.81.If shares trade in the range of $15.00 to $25.00 this next year, the recent $21.37 share price might grow to $22.40. Of course, T price could also drop about the same $1.03 estimated amount, or more.My $1.03 price upside estimate is the median of one year target prices estimated by the 25 analysts tracking T stock for brokers.
T Dividend
AT&T has paid variable quarterly dividends since August 1987. It’s most recent $0.28 Annual dividend was declared September 27th for shareholders of record October 10th, and the dividend will pau out November 1st. A forward-looking $1.11 annual dividend yields 5.19% at Monday’s $21.37 closing price.
T ReturnsPutting it all together, a $2.14 estimated annual gross gain per share shows up by adding AT&T’s $1.11 estimated annual dividend to the estimated price upside of $1.03, making that $2.14 gross gain.A little over $1000 buys 47 shares at the $21.37 price.A $10 broker fee (if charged), paid half at purchase and half at sale, could take about $0.2125 per share out of the $2.14 gross-gain to give us a net gain of $1.9275 X 47 shares = $90.59 for about a 9% estimated net gain for the year.Furthermore, the $51.90 estimated annual dividend income from $1K invested is almost 2.43 times more than the $21.37 share price. By these numbers, T could be an Ideal dividend dog.Thus, you might choose to pounce on T. It is a 41 year-old quarterly dividend-paying Dallas-based telecom with a 37 year dividend record.The exact track of T’s future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Report: Deutsche Telecom
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