AT&T Yields 5.3% and Trades Near a 52-Week Low. Is the SpaceX Threat Really Worth That Discount?
Yahoo Finance ·
AT&T ( T +1.92% ) isn't a stock that usually makes headlines. But lately it has been pulled into one of the market's hottest stories, SpaceX ( SPCX 4.51% ) , 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. 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. Capturing the concern weighing on the stock, Oppenheimer downgraded AT&T stock in June, pointing to SpaceX's Starlink satellites as a structural threat to the telecom's long-term broadband and wireless growth. SpaceX has been developing a direct-to-phone service, and it is reportedly plans to launch a Starlink mobile service for U.S. consumers.
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