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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: the traveler who wrote (5954)	7/2/2018 6:18:18 PM
From: robert b furman	1 Recommendation Recommended By the traveler Read Replies (1) \| Respond to of 27057

Hi traveler, I've read the dividend payout ratio was 40 $ - I went to Yahoo and they say it is at 60%. Over 70% payout is high imo. That being said I view T as a utility. Their business is very stable. The millenials will rely on their smartphones much more than late adopters like me (age 66). I see T leading the way with data streaming on unlimited data plans but but with what they call "skinny Packages". A skinny package is just a few channels - which is what I really only watch. T was the first to bring fiber to the house, they have a good business in Mexico Direct TV , Uverse,and now CNN, Warner Bros ,and the turner broadcasting co (who digitized older movies). They also will greatly benefit with the new corporate tax rates that con now depreciate 100% of the Capex - read that 5G which will be a long term buildout costing billions. There after tax cash flow will explode. They did have to issue 1.2 billion new shares with the merger. I have wanted to buy some T for several years. Back when they bought Direct TV everyone pooh poohed the move because they took on debt to buy it. I had a lot of puts sold to be able top buy T at a net purchase price at 31 ish. T did actually trade down to 30.97 but that month I had no puts expire. I ended up getting a LOT of cash and buying no stock. It has taken over 2 years for the price of T to cycle back into the 31 - 32 range. Had I been lucky enough to get the stock assigned to me back then , I'd have received 3.97 dividends at a lower tax ratevs the 2.25 premium I got to keep and pay a tax at a higher rate. This year I've not only had some 35 puts assigned to me but I've also bought some stock in the 32.50 range. Randall Stevenson is a great CEO IMO. By the time T buys anything after the regulators perform their antitrust review, Stephenson has all of the plans waiting to hit the ground running immediately after federal approval is received. To me they are a high divdend yield PAYER THAT IS PERHAPS THE SAFEST OUT THERE. A close friend of mine at GMI had his father retire from AT&T. Complete class family and totally secure all of the way through his career and retirement - I trust this company. When you can but 6.25 - 6.5 % YIELD And have confidence and sleep well - that is about as good as it gets. I love buying a stock at its 4 year low and getting paid 2.00 a year in a divided . You do that for a 5 year period and you are very comfortable about the company and your investment. I do not expect fast growth. I do expect great cash flow and debt reduction. Just last week T sold off their datacenter business for 1.2 billion. They have HUGE REAL ESTATE HOLDINGS AND AS COURSE OF NORMAL BUSINESS SELL QUITE A LOT EVERY YEAR. This is a true blue chipper much like Exxon ,but at a better yield . 6% vs 4.25 . Just my opinion. Bob