AT&T vs Verison
Dividend Growth Investing, REITs, Long-Term Horizon
Contributor Since 2016
Adam Galas is a co-founder of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 5,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.
The WMR brands include: (1) The Intelligent REIT Investor (newsletter), (2) The Intelligent Dividend Investor (newsletter), (3) iREIT on Alpha (Seeking Alpha), and (4) The Dividend Kings (Seeking Alpha).
I'm a proud Army veteran and have seven years of experience as an analyst/investment writer for Dividend Kings, iREIT, The Intelligent Dividend Investor, The Motley Fool, Simply Safe Dividends, Seeking Alpha, and the Adam Mesh Trading Group. I'm proud to be one of the founders of The Dividend Kings, joining forces with Brad Thomas, Chuck Carnevale, and other leading income writers to offer the best premium service on Seeking Alpha's Market Place.
My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives.
With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and safe and dependable income streams in all economic and market conditions.
Summary
- AT&T is trading at its lowest valuations in 20 years. It's an anti-bubble stock that could double in the next five years even with modest 1.7% annual growth.
- However, Verizon is 7% undervalued and expected to grow twice as fast over time, delivering historical 8% CAGR long-term returns vs 5.8% CAGR for AT&T.
- Verizon is the far superior choice for conservative income investors looking for a very safe 4.7% yield (4.1% for AT&T post cut), low volatility, and a recession-resistant business model.
- On any measure of quality and safety, Verizon is the smarter choice for retirees, and one of the most reasonable and prudent high-yield defensive blue-chips retirees can buy today.
- AT&T's anti-bubble return potential makes it a potentially good though speculative 5 to 10-year trade that should be sold when it eventually becomes overvalued and the proceeds put into higher quality and faster-growing high-yield blue-chips.
- This idea was discussed in more depth with members of my private investing community, The Dividend Kings. Learn More »
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