AT&T: Pay Yourself 11% With This Bond-Like Exposure

Summary:

  • AT&T has become a leaner and more focused company after cutting its media arm and reducing its debt.
  • The company also reported a solid Q3 which proves the firm is putting its volatile past behind it.
  • Additionally, AT&T is priced more attractively compared to its competitors Verizon and T-Mobile.
  • That said, there are some risks around the company’s massive debt pile, and the firm’s exposure to macro conditions could introduce earnings volatility.
  • Thus, selling put options on AT&T stock may be the most optimal way to generate income and take advantage of the company’s improved prospects.

AT&T Advises Its Over 200,000 Workforce To Work From Home, As Coronavirus Continues To Spread

Ronald Martinez

You’re probably familiar with AT&T (NYSE:T) and its stock at this point.

Countless digital ink has been spilled on the massive telecom company over the last few years, especially in light of the company’s recent breakup with Warner

TTM Verizon AT&T
Revenue (in billions) $134 $121.7

Operating Profit

$30.4 $31

Operating Margin

22.7% 25.4%

Long Term Debt

$134.4 $126.7

Long Term Debt / Op Profit

4.42x 4.08x


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in T over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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