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Is AT&T Inc. Stock Still Worth Its 5%-Plus Dividend?

T stock can still weather storms that would sink others

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AT&T Inc. (NYSE:T) stock has had a tough week. Actually … T stock has had a tough quarter.

But the recent announcement that it has lost 90,000 subscribers and that its hopes for a boon of new subscribers from its pending Time Warner Inc (NYSE:TWX) deal may be more optimistic than previously anticipated.

That has dropped T stock almost 6% in the past 5 days and almost 15% year-to-date.

With all the evolution going on in the cable space and the competition in the mobile space, the question becomes, is AT&T stock still a good long-term stock to hold to take advantage of the transition, or is it becoming a dinosaur?

Is T Stock Dying Off?

The simple answer is, AT&T stock has had a tough quarter and an especially tough week, but if you’re a long-term investor looking for a solid stock that will carry you through good times or bad, T is still a stock to consider.

Remember, the company is a Dividend Aristocrat, having delivered and grown its dividend for the past 33 years. Right now, that dividend sits at a solid 5.5%.

Because of the shift in strategies for T and its main rival Verizon Communications Inc. (NYSE:VZ), the past couple of years have been a wild ride for major telecommunications carriers as they have begun building for the future.

Both AT&T and VZ have acquired content and distribution assets to add to their telecom business. The goal is to offer far more than simple phone plans. Eventually, that market becomes saturated and you’re no longer growing your business but trying to grab customers from your competition, which doesn’t help long-term survival.

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