Tomahawk, WI 8/09/2013 (Basicsmedia) – AT&T Inc. (NYSE:T) has been providing telecommunication services to businesses, customers and other providers both in the U.S as well as on the international level. The company has been doing this since 1983 when it was founded, and it operates from Dallas, Texas where its headquarters is located. When it was founded, it was known as SBC Communications Inc, before changing its name in 2005 to AT&T Inc. It extends these services to customers with the help of its more than 245, 000 full time employees. Is it a good investment?

Why You Need to Look At AT&T Dividends?

There was a time when you couldn’t invest in a company until you had taken a look at how much it was giving back to its investors in the form of dividend. Most investors made decisions on whether to invest in a company or not, based on how much it was willing to pay as dividend. As long as investors are assured of regular income from their investments in AT&T, the will not have a problem with putting their money in this company. This is what most modern investors are looking at, and if they are assured of big gains in share price, they are willing to invest.

There has been a major decline in AT&T dividend yield in the recent quarters. The company’s valuation currently is quite lofty thus leading many investors to ask whether they really need to buy or invest in T, or look elsewhere for their investment needs to be met fully. At times, this decision can only be made by an individual investor after looking at his/her own goals and needs for making these investments in the first place. But I’d request you to consider both AT&T and Verizon since they are the two companies which control telecommunications industry in the U.S.

There is a close similarity with regard to how the two companies operate. AT&T as well as Verizon operates in more or less the same way. The product offerings of the two companies as well as the stock trade between them have a similar style in terms of how they function. If you were to take a look at their valuations and the dividend yields issued to its shareholders, you would notice that there is a similar way in which they operate. One can confuse one for the other if the names were not displayed. But Verizon has been doing much better than T.


The image, which is courtesy of, shows

T’s performance compared with its competitors.

What Should Investors Do?

Regardless of the similarities which exist between AT&T and Verizon, they are not equal. Even though Verizon performs much better than T, it is worth pointing out that AT&T is not a slouch either. It’s recently announced diluted quarterly earnings were 12% higher than they were last year. Secondly, it is worth mentioning that the company reported an increase of around $4 billion in cash flow. This is an important aspect which every single investor cannot afford to ignore. T’s fortunes have changed because the company spends significantly on advertising.

I would advice shareholders to hold on to their AT&T stock.

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