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DividendenPapa
@DividendenPapa
1Sem.·

AT&T Ahead of Its Quarterly Earnings Report and the Question of Whether This Trend Will Last

On Wednesday, October 21, $T (-1,06 %) the Q3 earnings report. $T (-1,06 %) It’s already in my portfolio. However, its performance so far and my weakened investment thesis still make me somewhat skeptical. That’s why I review the position regularly. I don’t currently plan to buy more shares.


My Key Watchouts:

  • Dividend: There hasn’t been an increase since the cut in 2022. When can we expect sustainable dividend growth again?
  • Operational performance: How are earnings and free cash flow per share performing?
  • Debt: Is debt reduction continuing to make progress?
  • Share Buybacks: Are the buybacks covered by free cash flow, and do they create long-term value per share?
  • Customer growth: Will mobile communications and fiber optics remain profitable growth drivers?
  • Outlook: Does management provide convincing arguments for sustainable improvement?


My current approach:

For now, I am not expanding the position further and am monitoring the fundamental developments. What matters most to me is sustainable growth in earnings and cash flow per share, progress in debt reduction, and a return to positive dividend growth. If this progress fails to materialize or the quality of the business continues to deteriorate, I will seriously consider selling. My focus is not on short-term price fluctuations, but rather on whether $T (-1,06 %) my long-term quality criteria are met again.


How do you assess the future performance of $T (-1,06 %)?


~Not investment advice~

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6 Commentaires
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HardRockDividende@HardRockDividende
1Sem.
Hey. I've been completely out of it for over a week. I don't have any confidence that things will get better anytime soon.
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DividendenPapa@DividendenPapa
1Sem.
@HardRockDividende I completely understand your decision. The stock hasn't been much "fun" to hold in recent years. If I may ask, what are your plans for the capital you've freed up? Will you reinvest it in the telecom sector, or do you plan to invest it in another sector?
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HardRockDividende@HardRockDividende
1Sem.
@DividendenPapa I increased my holdings in $VZ and invested in a few other stocks I already owned.
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DividendenPapa@DividendenPapa
1Sem.
@HardRockDividende Thanks for the feedback. One more question: Are you personally invested in $DTE as well? And if so, why $VZ and not $DTE? For me, $T has been the counterplay to $DTE in my portfolio so far. The question I’ve already asked myself is: if I were to sell $T, should I add a new counterplay to my portfolio, or should I stick with $DTE, since I’m already exposed to it through $TMUS?
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HardRockDividende@HardRockDividende
1Sem.
@DividendenPapa Hey. Whenever I think of $DTE, I always picture Manfred Krug from the late ’90s, advertising the “Volksaktie” 😁. For me, $DTE isn’t that interesting. I’m more interested in stocks that pay dividends quarterly. It’s a shame that German stocks only pay out annually. There are a lot of good German stocks. I have a large position in Mercedes-Benz—that’s about it. I hadn’t looked into $TMUS yet. It looks good at first glance. If you’re already invested there, it might be worth considering adding to your position. I’m convinced by $VZ because of its dividends and business model. The price appreciation isn’t that great, but that’s secondary for me.
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Ruben Schoff@Sand
1Sem.
It's been in my portfolio since 2020, and I've only collected dividends—no capital gains at all without trading. If it hits 25, I'll sell my position.
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