It’s on my to-do list over at Seeking Alpha, but I really need to get around to writing a full fleshed article on AT&T sooner rather than later. I haven’t touched on it much in my three years of writing because the company does have a lot of debt ($79.8 billion worth) and while the debt load is not something that would ever cause AT&T to go bankrupt, it is something that puts a drag on AT&T’s ability to grow earnings per share. You can see this yourself by noticing that AT&T’s ten-year earnings per share growth rate is 1.5%.
However, there is a countervailing force at play that is important to take into account: AT&T tends to offer a dividend yield north of 5% that is also simultaneously growing. That combination is very useful for spitting out new shares for someone who is choosing to reinvest their dividends. … Read the rest of this article!