Summary
- AT&T was built on cutting edge technology, but during its pre-1984 monopoly years, AT&T lost some of that edge to newer tech companies.
- The present AT&T was created in 2006 and through acquisitions is now integrating entertainment into its communications footprint.
- Look for growth to come from its Xandr advertising division and from subscription-based "on demand" content via devices connected to its delivery systems.
- March 6 closing price: $29.81. Annual dividend: $2.04. Yield: 6.84%.
- This idea was discussed in more depth with members of my private investing community, Margin of Safety Investing. Get started today »
AT&T Inc (T) offers investors a 6.84% dividend and the potential for capital appreciation as it integrates recent acquisitions in the entertainment industry.
This is the first of several articles about the telecom industry.
Old and new
In 1917, American Telephone & Telegraph was the second most valuable U.S. corporation at $14.1 billion. U.S. Steel was #1, valued at $46.4 billion. Today, AT&T is both old and new.
(Photo from thestreet.com)
My grandfather's sister had a long career as a switchboard operator at a local telephone company in Tennessee into the 1950s. The personalized telephone plug keychain below was a gift from the company in recognition of her service.
