AT&T (NYSE: T) shares have been moving in an uptrend last two weeks and for now, there is no signal of the trend reversal. Drugmaker Pfizer announced that it could have a coronavirus vaccine ready in the United States by the end of this year and this adds further support to AT&T stock.
Fundamental analysis: The current dividend makes AT&T one of the steadier players in the region
AT&T Inc. is handling the coronavirus threat very well and it is attracting investors’ attention in this uncertainty on the financial markets. The company’s recent earnings and its overall budget have continued to perform significantly above expectations and AT&T has plenty of room to continue to offer dividend hikes.
Analysts expect EPS growth to be about $3.75 in 2020 and approach $4.50 by 2022. AT&T shares have advanced from $26.3 to $29 in less than several days and the current price stands around $28.7.
The US stock market is supported by upbeat over the prospect of a divided Congress, COVID-19 vaccine news and less risk of major policy changes.
Joe Biden won the presidential election in his birth state of Pennsylvania last Saturday and become 46th president of the United States. Pfizer and BioNTech announced that their jointly developed COVID-19 vaccine which is effective in more than 90% of the patients.
Chief Financial Officer John Stephens said recently that he is confident in AT&T’s ability to generate strong cash flows in the upcoming period. AT&T has cut net debt by about $30B since Q1 and the company maintains investments in its focus areas (broadband connectivity via fiber/5G, software-based entertainment via HBO Max and AT&T TV).
AT&T has maintained multi-decade growth in its dividend payments
