AT&T keeps pace with its rivals

Article Excerpt

In the past few years, AT&T has invested heavily in its video services. That includes its July 2015 purchase of satellite TV provider DirecTV as well as its new investments in fibre-optic networks. In addition, the company has now completed its takeover of media giant Time Warner. Big acquisitions like this come with considerable risk. However, Time Warner’s movies and TV shows should help attract more users to AT&T’s wireless and streaming video services. We feel the Time Warner purchase makes sense, and will let AT&T keep raising its dividend. AT&T INC. $31 (New York symbol T; Income-Growth Dividend Portfolio, Utilities sector; Shares outstanding: 7.3 billion; Market cap: $226.3 billion; Dividend yield: 6.6%; Dividend Sustainability Rating: Highest; www.att.com) is the largest wireless carrier in the U.S. It also offers traditional phone and satellite TV services. In June 2018, the company completed its $103 billion cash-and-stock purchase of media giant Time Warner. AT&T plans to use Time Warner content to attract more users to its…