How to Buy AT&T Stock Now, Price Forecast and Dividend Guide
AT&T stock is a favourite of millions of investors for many good reasons. First of all, it's what's known as a "dividend aristocrat," meaning it pays high and rising dividends. But it is also a diversified telecom group, which is expanding into very high-potential activities in addition to its core business.
In this article, we will therefore analyze AT&T stock in detail and from different angles, to confirm whether it is a wise investment in the short and long term. We will also introduce you to an ideal online broker to buy AT&T stocks and others.
AT&T Stock Overview
AT&T's main business is wireless telecommunications, alongside competitors such as Verizon and T-Mobile. Headquartered in Dallas, Texas, the company was ranked 9th on the Fortune 500 list of the largest US companies in 2020. But it is also a global company, with operations in many countries through its many subsidiaries. It is the third largest telecommunications company in the world.
The company's history dates back to 1885 and telephone inventor Alexander Graham Bell, with telephone and telegraph operations. But today it is a diversified group, providing wired and wireless communications, an internet provider, and a media company, with the acquisition in Time Warner in 2016, and with its HBO Max streaming service, a competitor to Netflix.
The company's structure is organized as follows:
- Communications (71% of revenues)
- WarnerMedia (27% of revenues)
- Latin America (3% of revenues)
In the rest of this guide, we'll go into more detail about the company's operations and recent developments to determine whether buying AT&T stock is a good investment idea. Before we do that, let's take a look at AT&T's historical stock price trend.
AT&T Stock Historical Price
AT&T stock is listed in the United States on the NYSE. The AT&T stock symbol is "T" and its ISIN code US00206R1023. AT and T stock is included in the most prestigious U.S. stock indices, including the Dow Jones and the S&P 500.
AT&T Stock Price History
For the sake of relevance, we will focus here on AT&T's share price performance since the 2000s, based on the monthly chart.
The year 2000 marked the end of an almost two-decade-long downward trend for AT and T stock. After an all-time high of $59 in October 2000, AT&T stock prices began a multi-year correction, falling to a low of $18.85 in March 2003. The stock then began a slow recovery phase, hitting a ceiling around $44 in July 2016. Since then, AT&T stock has lost ground, a decline that accelerated with the Covid-19 pandemic.
Why Invest in AT&T Share? Points to Consider
Before deciding whether AT&T stock is a buy or sell, you should consider the company fundamentals, along with historic price movements and forecasts. This is what we will talk about in the next sections of this guide.
The AT&T Stock Dividend is Impressive
AT&T stock falls into the "dividend aristocrats" category, which includes a handful of companies that have been paying steadily increasing dividends to their shareholders for decades.
AT&T stock dividend boasts an impressive 7.5% yield, making it an obvious choice for income-focused investors. In fact, buying AT&T stock at the current price means exposing yourself to the possibility of earning 7.5% per year, regardless of how much the stock price rises.
5G Offers Unlimited Growth Opportunities
AT&T stock is also considered one of the best bets on 5G technology. As a telecom company, AT&T is among the companies operating the 5G network, both in the U.S. and around the world.
With the rollout of 5G technology, we can expect an increase in subscriptions and higher prices for them, which could greatly benefit AT&T stock prices, given that telecom accounts for most of its revenue.
A Restructuring That Should Pay Off
In August 2021, AT&T announced its intention to separate Time Warner from the group, and merge the company with Discovery. This will allow AT&T to free up the resources needed to maintain its lead in 5G technologies.Yet, according to analysts, the two resulting companies could independently display more attractive profiles than together in the AT&T group, creating value for shareholders.
AT&T Stock Forecast and Prediction
A stock's prospects can be evaluated in a number of ways. In order to get an objective opinion on AT&T stock, we will look below at its fundamental outlook, technical analysis, and professional analysts' opinions on the stock.
A key positive for AT&T stock forecast is that the company has exceeded analyst expectations for the past 4 consecutive quarters in terms of both earnings per share and revenue. Furthermore, both EPS and revenue have been very stable for many years. While this suggests limited growth potential, it also means that AT&T is a very safe stock, having weathered several crises without significant impact on its revenues or earnings.
Also, keep in mind that AT&T has a very strong dividend yield of 7.5%. It is therefore a stock that we buy more for its revenue generation than for its upside potential.
The weekly chart shows that AT&T stock quote has been in a long-term downtrend since July 2016. However, we can also see on this chart that a floor around $26.50 has been clearly defined for the stock in recent months. This area has in fact stopped major corrections in March 2020, November 2020 and August 2021.
There are currently 12 professional analysts that follow AT&T stock. Five of them recommend buying, and five recommend holding. There are only 2 who recommend selling.
Moreover, the average target price of the stock is $31.50, which implies a potential upside of almost 15%, to which we must add the dividend yield of 7.5%.
Where Can I Buy AT&T Stock?
It is sometimes difficult to choose an online broker as there are so many. That's why we've reviewed many of them to determine which is the best one to buy AT&T stock. And the name that came up most often was the broker ZFX.
ZFX, a World-Class MT4 Broker
This is a relatively new broker, as it was only created in 2018. However, its seriousness is not to be questioned, as ZFX is regulated by the FCA.
ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many advantages in terms of technical analysis and automated trading. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Buy AT&T Stock Easily?
Buying AT&T stock from ZFX broker is a quick and easy process. In fact, you will be able to open an online account in just a few minutes by following these steps:
- 1 - Register with ZFX
- 2 - Verify your ZFX account
- 3 - Make your first deposit
- 4 - Buy AT&T stock
Let's go through each of these steps in detail.
1 - Register with ZFX
You will need to go to the ZFX website homepage and click on the "open an account" button for this first step. A registration form will appear. You will need to enter several personal details, as shown in the image below.
It will also be necessary to verify your phone number via SMS.
You will then have to choose your account type, and accept the general and privacy policies After completing and validating the form, you will be able to download the MT4 platform immediately.
2 - Make Your First Deposit
To deposit money into your ZFX account, you will need to click the "make a deposit" button on the screen displayed immediately after registration. You will then need to choose a payment method. Let's take Mastercard as an example:
You will be asked to enter the amount to be deposited and then click the "Confirm Deposit" button on this screen. You will then need to enter your credit card information before the final validation of the payment.
3 - Account Verification
The final step before you can purchase the AT&T share is to verify your account. To do this, you will need to submit supporting documents online, as shown below:
Once your documents are validated, you will then be ready to buy AT&T stock.
4 - Buy AT&T Stock
You can now proceed to invest in AT&T stock. On MetaTrader 4, you shall find it in the Stocks section, under its symbol “T”.
Bottom Line: Should You Buy AT&T Stock?
AT&T is an old and safe stock with a particularly stable financial performance. Moreover, its decline over the past few years, and the fact that it is near a technical low, make this an ideal time to buy.
Added to this are other key arguments, such as the fact that the T share is one of the best bets on 5G technology. Most importantly, AT&T stock is valued by investors for having one of the highest dividends in the market, which represents an annual yield of 7.5%.
If you too would like to add AT&T stock to your portfolio to generate regular income without further delay, we invite you to learn more about the online broker ZFX immediately. Indeed, for the many reasons mentioned in this guide, we believe it is one of the best brokers to buy AT&T stock and many others.