2024-07-26 11:20:49 ET
Summary
- AT&T released earnings recently and the financial performance was middling, but the dividend is well covered and offers a healthy premium over the risk free rate.
- Comparing the stock to 10-Year Treasury Notes we see that the dividend yield of AT&T is 6.10% compared to the risk free rate of 4.2%.
- Analyzing the dividend sustainability we see that the company has sufficient cash flow to cover obligations and investments, with a low payout ratio of 59%.
AT&T ( T ) has just released earnings, and I wanted to review them to see if it’s worthwhile buying this former dividend aristocrat at current prices or not. I’ll make that determination by looking at the most recent financial statements, paying particular attention to the viability of the dividend, for obvious reasons. I’ll then compare the stock to the risk free rate to see if investors are being adequately compensated for the risk of stock ownership or not....
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AT&T A Bargain At Current Prices