Trading212 Portfolio- 29/03/20

Weeks summary


Stock picked: AT&T

Ticker: T

Shares added: 0.22

Total shares owned: 0.52

Dividend yield: 7.08%

Payout ratio: 105%

Dividends received:

£0.05


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This weeks stock


This weeks poll concluded that the stock AT&T ticker T will be the next stock to receive the £5 investment. There has been a lot of talk lately about T so this is a great opportunity to break this stock down. We have managed to average down in this stock, we are currently £1.54 down (-10.92%).


What does AT&T do?

AT&T Inc. provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr.

The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers.

This segment also sells handsets, wirelessly enabled computers, and wireless data cards manufactured by various suppliers for use with company's voice and data services, as well as various accessories, such as carrying cases and hands-free devices through the company-owned stores, agents, and third-party retail stores.


Fundimentals:

Dividend Yield: 7.08%

Payout ratio: 105.1% (Yahoo finance)

Profit margin: 8.05%

Return on assets: 3.29%

Return on equity: 7.99%

P/E ratio (price to earnings): 15.16

Adjusted EPS: 190

EPS (Earning per share) Growth: -33%

BETA: 0.68

Cash: $10B

Debt: $199B

EBITDA: 53B


Stock breakdown:

Lately T has been much talked about due to the dividend yield and the price of the stock, which is considered good under $30. Though the dividend yield of 7% is an amazing yield, the worrying thing is the payout ratio. With a payout ratio of over 100% means they are having to use debt or assets to cover the dividend. But Using EPS payout ratio we see that it is 58% which is much lower than the 10 year average of 69%. I would definitely keep an eye on the payout ratio going forward.

Looking at the profit margin of T it is under the 10% I would like from a company, it really isn’t anything spectacular. Piecing the dividend yield, payout ratio and the profit its very obvious that T is a dividend income stock more than anything. I would like to mention that AT&T has recently acquired Warner Media, which is a great additional boost to the cash flow.

The P/E ratio on this stock is currently 15.16 which in my opinion means its around fair value and its nice to see it is under 20.

Seeing the BETA of 0.68 is not bad and is under 1 so doesn’t track the market too much.

My largest problem with AT&T is the huge amount of debt compared to cash the company holds. I would really like to see this company reduce the amount of debt which they have on their books.

Link to AT&T - Time Warner acquisition.


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Dividends received

This week we received 1 dividend this week totalling £0.05

WM @ £0.05

Total dividend (Month): £2.03

Total dividend (6 month): £4.37

Amount for charity (6 month): £1.09


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General account summary

We are now coming to the end of the first half of the year and on Wednesday will be the portfolios first charity donation. If we receive a dividend in the next couple days, it will go towards this half of the years dividend. Though for having the portfolio only recently conceived a donation of £1.09 is a great start. The portfolio has finished today at -£9.08 (-2.55%). The market is currently acting as a kangaroo market. Coming into the next month we shall hopefully see more and larger dividend payments coming into the account. Hand in hand with larger dividend payments means more donations for the next charity.


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What is:

P/E ratio EPS Payout ratio BETA Dividend


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