AT&T Yields 5.3% and Trades Near a 52-Week Low. Is the SpaceX Threat Really Worth That Discount?
A satellite-driven downgrade has pushed the telecom stock near its lows. Income investors may see an opening.
Overview
AT&T (NYSE: T) isn't a stock that usually makes headlines. But lately it has been pulled into one of the market's hottest stories, SpaceX (NASDAQ: SPCX), and the result is a beaten-down share price and a mouth-watering dividend yield.
At about $21 as of this writing, just above its 52-week low of $19.89, AT&T's $1.11 annual dividend yields about 5.3%. Part of the reason the stock sits so low is a growing worry that SpaceX's satellite network could eventually eat into AT&T's business.
Details
So is that fear justified? And with the yield this high, is the dividend safe? Those are the two questions that matter for income investors here.
Source
Originally published at www.fool.com.