Combat Inflation with Dividend Deliverer AT&T

Stock Market

Dallas-headquartered telecommunications giant AT&T (NYSE:T) now has a deal with the Federal Aviation Administration (FAA). This should help solidify AT&T’s status as a 5G leader. This also bodes well for T stock, which is ideal for value seekers and dividend collectors alike.

When dollar inflation gets to a fever pitch, stubbornly staying in an all-cash position might not be the best option. Knowing this, sensible investors should compile a watch list of rock-solid, reasonably priced stocks.

If you don’t mind delving into telecoms, then AT&T deserves a prime spot on your value-focused watch list. As we’ll see, the company is generous to its loyal shareholders and the shares are quite affordable now. Besides, there’s some eye-opening 5G-related news that could make AT&T the sky-bound carrier of choice.

Ticker Company Price
T AT&T Inc. $20.98

What’s Happening with T Stock?

Is it possible to combine growth and a reasonable valuation? Yes it is, and T stock offers the best of both worlds. In terms of growth, consider that the AT&T share price rose 9.22% during 2022’s first half. Meanwhile, the S&P 500 declined 21% during that time.

Even with that impressive performance, there’s still a great value here as AT&T’s trailing 12-month price-to-earnings ratio is just 8.79. Clearly, the stock isn’t overpriced — and since it’s in the $20s, it’s affordable for most investors.

Already, we’re starting to see the advantages of holding some T stock shares instead of just hiding out all in cash. Besides, while the dollar continues to lose value over time, AT&T is paying a forward annual dividend yield of 5.56%. So, you can reinvest the distributions every three months and take advantage of the compounding effect.

Speaking of which, AT&T just recently declared a quarterly dividend of $0.2775 per common share. Hence, the sooner you start investing, the sooner you can capitalize on AT&T’s commitment to the company’s shareholders.

Aiming High with 5G

We mentioned the unfortunate topic of inflation earlier, and here’s a development that might make some folks uncomfortable. Reportedly, AT&T is raising the prices of some of the company’s older wireless plans.

Is this a knee-jerk response to rising inflation? Not necessarily. More likely, it’s AT&T’s way of encouraging those subscribers to switch to newer, unlimited-data plans. If this pans out, then it could result in more revenue for AT&T.

Also, AT&T now has an agreement that could enhance the company’s position as a leader in providing 5G network connectivity. Specifically, the FAA is allowing AT&T to expand its 5G service around some airports, while airlines modify their aircrafts so that they’re less susceptible to 5G interference.

The FAA considers this to be a “phased approach” to 5G launches around airports. It makes sense, since safety must be a priority along with greater access to best-available connectivity.

An AT&T spokesperson reportedly stated that the company is moving toward seeing all voluntary restrictions of AT&T’s 5G-network deployment around airports lapse by the summer of 2023. Again, it’s a safety-first approach that allows AT&T to gain the trust of organizations like the FAA.

What You Can Do Now

Now, you have a slew of reasons to put T stock on your watch list and possibly even in your portfolio. For one thing, AT&T’s agreement with the FAA will establish trust while allowing AT&T to maintain a strong presence in the particular field of 5G.

Furthermore, AT&T’s generous dividend yield and reasonable share price should sweeten the deal. So, to help combat the unfortunate impact of inflation, don’t hesitate to put this telecommunications giant on your radar.

T stock currently earns a “B” on my Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Articles You May Like

7 Blue-Chip Stocks to Buy Now for Growth and Dividends
7 Dividend Stocks to Buy on the Dip
Stocks making the biggest moves midday: Lyft, Carvana, Warner Bros. Discovery, DraftKings
Berkshire Hathaway reports operating earnings surge, but posts big investment loss amid market rout
[Inner Game] Anger vs Sadness for Trading Which Emotion is Better Ep 251