AT&T (T) stock is down 9% since November 4. T stock has a lofty, yet reliable, current dividend yield of 5.6% and is a mainstay on the list of top dividend stocks. In the wake of the stock’s recent retreat, T is trading at just 12 times forward earnings.
From a business standpoint, there is a lot to like about AT&T. First, whatever the outcome of the Federal Communications Commission’s ongoing “net neutrality” battle, T stock is positioning itself to profit. Last month, the company announced a “sponsored data” plan, whereby businesses can pay for their customers’ access of broadband content like mobile video.
Also, T is teaming up with IBM (IBM) on the “Internet of Things” — combining their security, cloud capabilities and analytics platforms to jump-start Smart City initiatives. These new market opportunities have the potential to actually boost the performance of T stock over the next couple of years, too.