AT&T (NYSE:T) is the second-largest telecommunications company operating in the United States. Its stock has also achieved over 25 consecutive years of dividend growth.
AT&T last paid out a quarterly dividend of $0.51 per share, which represents an attractive 5.5% yield. The company’s history of rewarding its shareholders and its wide moat is enough to consider adding it today, but I also like it as an unsung competitor in the streaming wars.
WarnerMedia, which was recently acquired by AT&T, is set to unveil HBO Max early this week. AT&T currently comes in second, right behind the Disney behemoth, with the most affiliate revenue per average subscription in 2018. Not only does it have the depth of content to be a heavy hitter, but its niche programming is worth getting excited about.
HBO Max is expected to be available by the second quarter of 2020. AT&T is coming out swinging with its streaming pitch, putting together the most aggressive package of its peers. HBO is already sold as a standalone outside the cable bundle for $14.99 per month.
CEO John Stankey has set a lofty goal of 70 million to 80 million subscribers for HBO Max, aiming to hit the 50 million mark by 2025.
WarnerMedia is targeting a price between $15 and $18 per month for HBO Max, which puts it cable offering in the crosshairs. This is part of its wider wireless push, and shows the AT&T is ready to offer up a platter that can bury cable sooner rather than later.
