Author Topic: Thinking about investing in AT&T (T)  (Read 1670 times)

jnw

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Thinking about investing in AT&T (T)
« on: March 14, 2022, 05:30:16 PM »
It's at a really low price right now around $22.  It's P/E ratio is around 8. Dividend is 7.3%.

I just got AT&T Fiber 300 service, and let me tell you I have never experienced such excellent service in my life.  They told me it was available one day last week, I signed up for it and they installed it at 8AM the next morning. 

The service is guaranteed at 300 mbps both DOWN AND UP!  Cable services typically only have 10-40 mbps up which makes uploads take forever.  However I am getting more than 300 up and down.. it's more like 370 mbps.

It's $55 per month and tax/fees are 35 cents so it's $55.35 here in Oklahoma.  They promise the monthly bill won't go up in 12 months.  They have no equipment fee.  Their router/modem is the best looking one I've ever seen (upright trapezodial monolithic with one light at the bottom middle).
 
The had a rep come out right after it was installed to make sure I was happy (and of course to pitch a few other things but they didnt' press them at all).  He was a really nice young guy;  we talked a bit and he's doing Dave Ramsey's debt snowball right now but I told him about MrMoneyMustache and I think he might check it out :)

There is no data cap either.

They even made a personalized video addressed to me, they actually say my name in the video, explaining my bill and dollar amounts and when the bill is due. 

I just have never seen this sort of service and value before.  The rep told me people in the area are quitting cable internet in large numbers every day switching to AT&T fiber.

I don't know the rest about the company other than that they gave up on digital content streaming and the low stock price reflects their failure in that area.  I am more interested in their internet offerings and I suspect great growth but I could be wrong. I also like the high dividend.

So with all that said I am thinking of putting like 5% of my monthly allotment into T instead of all into VTI.   Just because I like the company so much and what they offer.  But I know it's not necessarily a good purchase just because I am personally happy with what AT&T provides me.. so this is why I posted this here.. to see what others think about AT&T and investing like 5% into it.
« Last Edit: March 14, 2022, 05:40:03 PM by JenniferW »

jnw

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Re: Thinking about investing in AT&T (T)
« Reply #1 on: March 14, 2022, 05:46:13 PM »
I just asked alexa what percentage of homes have fiber internet and she said only 8%.  But she's given me bad information before lol.

jnw

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Re: Thinking about investing in AT&T (T)
« Reply #2 on: March 14, 2022, 05:48:15 PM »
Verizon and Google do fiber internet to home I believe, but I don't know what their service is like compared to AT&T.

jnw

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Re: Thinking about investing in AT&T (T)
« Reply #3 on: March 14, 2022, 05:50:28 PM »
Oh, also I am getting a $200 rewards VISA card from AT&T for signing up online.

Financial.Velociraptor

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Re: Thinking about investing in AT&T (T)
« Reply #4 on: March 14, 2022, 06:28:22 PM »
The yield is about to fall dramatically.  T is spinning off discovery media (basically the Dish acquisition).   You will soon own two businesses with very different business models.  T will then spend decades paying down debt rather than growing distribution.

It is probably a better business after the spin off but it is in my "hard to evaluate" pile.

jnw

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Re: Thinking about investing in AT&T (T)
« Reply #5 on: March 14, 2022, 06:34:01 PM »
The yield is about to fall dramatically.  T is spinning off discovery media (basically the Dish acquisition).   You will soon own two businesses with very different business models.  T will then spend decades paying down debt rather than growing distribution.

It is probably a better business after the spin off but it is in my "hard to evaluate" pile.

Will the debt really be that bad considering the fixed lower interest rate loans and an inflation rate of 7.5% per year we've been having?
« Last Edit: March 14, 2022, 06:37:24 PM by JenniferW »

dblaace

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Re: Thinking about investing in AT&T (T)
« Reply #6 on: March 14, 2022, 07:39:01 PM »
ATT is spinning off WarnerMedia with Discovery, Inc. ATT Shareholders will get 71% of the new company, about 24 shares per 100 att shares the last I heard. It will be a net debt reduction for ATT. DIV is expected to be $1.11 vs $2.04. Still a nice DIV.

https://variety.com/2022/biz/news/att-spin-off-warnermedia-43-billion-deal-1235168480/

ChpBstrd

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Re: Thinking about investing in AT&T (T)
« Reply #7 on: March 14, 2022, 08:32:39 PM »
The yield is about to fall dramatically.  T is spinning off discovery media (basically the Dish acquisition).   You will soon own two businesses with very different business models.  T will then spend decades paying down debt rather than growing distribution.

It is probably a better business after the spin off but it is in my "hard to evaluate" pile.

Will the debt really be that bad considering the fixed lower interest rate loans and an inflation rate of 7.5% per year we've been having?

A 7% dividend from a highly-indebted company might not be worth much when treasuries start yielding 7% again.

ice_beard

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Re: Thinking about investing in AT&T (T)
« Reply #8 on: March 29, 2022, 09:36:08 PM »
Don't.

Heckler

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Re: Thinking about investing in AT&T (T)
« Reply #9 on: March 29, 2022, 09:52:50 PM »
I just asked Alexa what percentage of homes have fiber internet and she said only 8%.  But she's given me bad information before lol.

also why I don't buy AMZN as a single stock either.

jnw

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Re: Thinking about investing in AT&T (T)
« Reply #10 on: March 29, 2022, 10:52:22 PM »
Hehe.

MustacheAndaHalf

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Re: Thinking about investing in AT&T (T)
« Reply #11 on: March 30, 2022, 09:46:06 AM »
In case others don't know, this is similar to an approach that Peter Lynch made famous in his book "One Up On Wall Street".
https://www.amazon.com/One-Up-Wall-Street-Already/dp/0743200403

The boring side that gets less attention is that Peter Lynch analyzes the stock.  He spotted a great customer experience and then determined if the stock had potential as well.

jnw

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Re: Thinking about investing in AT&T (T)
« Reply #12 on: March 30, 2022, 12:19:24 PM »
WarnerMedia which AT&T owns, just announced yesterday it is going to offer CNN+.  Finally a CNN streaming service, not tied to a cable subscription; I was wishing this existed some years ago.  I don't know if this would improve the T stock or not since WarnerMedia is breaking off from T right?  I don't know how all that works.

I know in the past, I'd be interested in CNN+ since that is the news I used to watch, but things have gotten too political for me these past few years and so I really don't watch news much anymore. (Except the Russian invasion sucked me back in recently.)

 

Wow, a phone plan for fifteen bucks!