Summary
We have been accumulating additional shares after the most recent pullback which took the stock under $30.
In Q3, weakness was seen in its Entertainment Group, but WarnerMedia shined.
This is an income name, and so it should be all about dividend safety.
The debt is the biggest risk to the company.
This idea was discussed in more depth with members of my private investing community, BAD BEAT Investing. Start your free trial today »
We believe it is time to check back in on our top dividend stock holding, AT&T(NYSE:T), as we have been accumulating additional shares after the most recent pullback which took the stock under $30 and drove the yield to over 6.6%. While we have covered this name quite a bit over the years, we want to talk about performance and why we believe that while growth is currently lacking, it is an ideal name to own for a safe dividend. It is our belief that AT&T had a so-so Q3, but the fundamentals remain in good shape.
Make no mistake, AT&T has had a volatile two years of trading, which has seen shares over time move lower, to sub $30 for a brief stint here in fall 2018. Some quarters have been stellar, while others have been tough. With this volatility, we have seen numerous acquisitions, including the highly controversial acquisition of Time Warner, or as it is now known, WarnerMedia. We still believe it will take several quarters for any synergies to be fully experienced, but the synergistic effects are already having a remarkable impact.
