Tuesday, August 16, 2011

New Recent Buy...

Recently I added another position to my portfolio.  

With the addition of this company, I now have 15 dividend stocks (and have accomplished one of my goals for 2011! :)

The stock I recently purchased was:

AT&T (T)
AT&T's bid for T-Mobile USA promises to reshape the U.S. wireless industry, potentially forcing smaller players to scramble in search of ways to keep pace. The key issue now is whether regulators will sign off on the deal. While betting against AT&T's regulatory savvy is tough, we see several potential hurdles. AT&T and Verizon Wireless have already come to dominate the industry, claiming roughly 60% of all customers; adding T-Mobile would bump that figure up to around 70%. The firms have steadily stolen market share among high-end customers in recent years. Finally, we believe many of the benefits AT&T claims customers will see as a result of this deal could be attained in other ways.

Some quick facts about AT&T:

*Huge 5.95% Yield
*Pending bid to buy T-Mobile
*27 years of higher dividends
*8.6 P/E Ratio
*Decent 5.39% 5-yr Dividend Growth Rate

I initiated a position with AT&T of 45 shares at a purchase price of $29.09.   Though I don't think my entry price was an absolute steal, I am bullish on T and am interested to see what happens with the T-Mobile deal.  If the deal does go through, I will be glad to have been a shareholder prior to I think.  But only time will tell.  Either way, a 6% yield and a 5% 5-yr growth rate is pretty good for what I am looking for.

One closing note - this stock was #7 on my Top 20 Stocks Watchlist. I will remove it from my list and add another great dividend paying company for you to consider shortly.

I believe AT&T is a solid company and a great dividend growth stock.   What are your thoughts?

Thanks for reading,


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  1. Nice pickup. I own a bunch myself, and may buy more if it goes a little lower.

  2. Anonymous,

    Thanks for the note. Though I didn't buy at it's lowest point, I think anything at or under $29 is a good price. Take care,


  3. Partisan,

    Great move. Solid yield, that is slowly growing. I wanted to purchase ATT a while back, but it shot up after the T-Mobile rumor. I then went with TEF instead for my telecom play. I still have my eyes on Big Blue! I think it's a solid play right now.

  4. What do you guys think of future dividend growth of T? Doing the math, it doesn't look great. Good yield though.

    I would think the younger you are the more you would favor dividend growth rather than current yield. Just my 2 cents.

  5. Anonymous,

    I think its difficult to forecast future div growth of T (at least for me) with the pending T-mobile merger.

    As for your other question, I look at total return when evaluating stocks... and with a yield of close to 6% and 5 year div growth of close to 5.5%, T seems to be a good pick for me.

    Keep in touch,