Well the verdict is in. AT&T has been allowed to merge with Time Warner. Since the announcement the stock has been trending downward. I think there will be some short term volatility but this merger will be the precedent that other companies will follow. I am more than willing to acquire the stock now and reap the benefits along the way. So let’s take a look at some of the metrics from the company.
AT&T Stock Dividend Data
Current Dividend Yield: 6.33%
Annual Dividend: $2.00
Payout Ratio: 58.7%
Dividend Growth History: 33 years
Earnings Per Share: $3.41
PE Ratio: 6.40
Recap of Information on AT&T
A lot of the information on AT&T is the same as when I discussed it in my first AT&T buy article and again in my second AT&T buy article.
AT&T is looking to own the rest of OtterMedia.
The company has also recently unveiled WatchTV which is their own streaming service along with the announcement of two new unlimited cell phone plans.
Also they have agreed to acquire AppNexus which is one of the largest independent ad exchanges.
AT&T Impact on More Dividends
I added 13 shares of AT&T at an average price of $31.79. This addition to my portfolio will add $26.00 to my projected annual dividend income not including the compounding factor. My current position in AT&T contributes $92.37 to my projected annual dividend income.
With the recent merger news, I felt like now was a good time to add some more to this AT&T position. It went from a starting position to a core position in no time. This will probably be my last purchase of this company for awhile. It has jumped up to one of my larger positions and I don’t want to overweight the position. I do like the strategic moves that the company has been making so it will continue to be on my watchlist even though I am not looking to add to it at this time.
Have you recently purchased stock in AT&T? Do you currently own any shares of AT&T? If so I would love to hear about it.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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