AT&T: A solid, low-risk buy
Despite spending billions to expand its network, the firm continues to ring up solid and consistent growth.
AT&T (T) has a core strategy that is oriented around upwards of $5 billion in capital spending every quarter to expand the capability of its wireless and broadband network.
That’s made possible thanks to $10 billion-plus in quarterly cash flow. And although it failed to buy Deutsche Telekom ’s T-Mobile USA unit last year, the company did continue to execute its formula for robust long-run growth.
The chief challenge is accommodating wireless network traffic that grew an estimated 40 percent last year. Priority one is expanding AT&T’s 4G network based on long-term evolution (LTE) technology.
Management bought $1.9 billion worth of wireless spectrum from Qualcomm in late December. And it’s rumored to be pursing a takeover of far more spectrum-rich Dish Network.
Congress is currently considering a proposal to auction unused wireless spectrum allotted to the TV industry. The FCC could place conditions on AT&T’s ability to bid.
That won’t alter the fact, however, that only AT&T and Verizon have the money to put acquired spectrum to work immediately.
AT&T’s boost in data rates last month -- even as it added business -- clearly demonstrates it’s vibrant as ever in the constantly expanding connectivity marketplace.
On track for consistent annual earnings growth of at least 6 to 7 percent and paying a rising dividend of nearly 6 percent, AT&T is a solid, low-risk buy up to $33.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The retailer labels the character's fake memoir as non-fiction. This comes weeks after it categorized the the Bible as fiction.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.