Why Does AT&T Have A 5% Dividend Yield?

ByBlack Coral Research:

By Clinton Holmes

Seriously, when I first saw AT&T’s (NYSE:T) dividend yield was above 5%, I couldn’t believe it. AT&T is a long-standing proven company. Over the last two decades, AT&T has had multiple periods of explosive growth.

The first period of growth came between 1995 and 2005 when revenue and net income almost tripled due to the activation of AT&T’s mobile infrastructure.

T Revenue (Annual) data by YCharts

The second period of growth came between 2005 and 2009 when revenue tripled and net income doubled thanks in large part to AT&T’s exclusive rights to Apple’s (NASDAQ:AAPL) iPhone.

With interest rates still in the gutter, it doesn’t make sense to me that investors haven’t driven the 5% dividend yield down by gobbling up shares of AT&T. As you can see, there has actually been a divergence between the dividend yield of AT&T and the SPDR Barclay TIPS ETF (NYSEARCA:IPE).

T

Complete Story »

---

Follow Arabian Post

Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.

---

Notice an issue?

Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

---