AT&T (T) STOCK ANALYSIS FOR 2022

Do you use AT&T (T) as your cell phone provider? How long have you used it as your provider? A long time probably, since AT&T is a behemoth of a company. Founded in 1983 and currently holds 230,000 employees. It’s as close to a dinosaur as you may think since it has been around forever.

            Verizon Communications (VZ) is the only telecom service bigger than AT&T, with a market cap of $218.48 billion, and was founded in 1983 as well. AT&T’s market cap is $176.95 billion. Closing in on (T) is T-mobile US (TMUS), with a market cap of $150.59 billion.

            AT&T will spin off a part of their business (WarnerMedia) and merge it with Discovery Inc (DISCA). Expect the merger to close out by mid-2022. It’s preferable to wait for the completion of the merge and see how other investors react to the price. It is a cheap stock looking like a bargain, but it could get “more affordable,” if you know what I mean.

Netflix (NFLX) has returned over 450% over the last 5 years.

            Their 5YR P/E is currently at 11.78, making it very attractive and hinting at undervalued or discounted prices. However, return on investment (ROI), assets (ROA), and equity (ROE) are all subpar, with a return of under 2% on all of them. Big red flag for me.

            An eye-popping dividend at 8.5%, which makes many investors salivate. However, we can expect a cut next year once the merger is complete with high certainty. Also, the dividend paid takes about 60% of the Free Cash Flow (FCF), which is not good if you have debt or are trying to grow the business. Currently, a total of $15 Billion is paid off in dividends by the $25 Billion of FCF. That leaves (T) with only $10 Billion of FCF to pay debt and grow the company.

            To make matters worse, their FCF is $23.44 billion. As a rule of thumb, we can multiply that amount by 5 (5YR projection), and we get a total of $117.2 billion. We would love to see their debt under $117 billion. However, their total long-term debt is sitting at an outstanding $284.2 billion, which more than doubles our estimated numbers. It means that (T) has too much debt relative to their free cash on hand.

            Understand that FCF is critical because you can do many great things to help your company when you have free cash. Things like paying down debt, buying back shares, reinvesting in the company, making acquisitions, or paying dividends. As a result, the excellent use of FCF will be more appealing to shareholders than paying a hefty dividend while burying themselves in debt. Just think about it, is the bank willing to lend money to the guy with little to no debt or the guy that makes $50K a year but owes over $200K?

Be a landlord anywhere in the United States, without the hassle.

            Their revenue has grown slowly over the last 5 years. I like that. It is preferable to see slow and steady growth than a chart that looks like a cardiogram with random spikes. When reality sets in, those spikes are always followed by crashes. My only concern is that although they have acquired many smaller companies, their revenue growth has not shown much improvement.

             Following that, their Net Income has shrunk for the last 5 years from $12 billion in 2017 to $1 billion in 2021. Another reason for concern besides their shrinking income is the outstanding shares have gone up from 6.1 billion to 7.1 billion. We want the outstanding shares to shrink and net income to grow. But, just like Santa Claus got it backward when I asked for a lean body and a fat wallet, AT&T got confused as well and had it all backward.

            Not all is bad news with (T). They have grown their FCF from $15 billion to $28 billion. The average FCF for the last 5 years is about $23.4 billion. Estimating this average can be kept for the next 20 years, we can calculate a market cap of about $468 billion. In the beginning, we said the current market cap is $176.95 billion. Our numbers suggest that this metric undervalues it.

Game Stop (GME) the meme stock that ran over 4,700% during the pandemic.

Summary:

            (T)’s good points: Low P/E, big dividend (suitable for investors looking for cash flow), slow but steady revenue growth, slow and steady FCF growth, and “undervalued” per FCF metric.

            (T)’s bad points: Not sure what to expect from the spin-off merger as far as price action, meager returns on ROI, ROA & ROE. There is a high probability of seeing a cut on the dividend, and their debt is too high. Revenue has not grown much despite their acquisitions. Net income is shrinking, and outstanding shares are rising.

            Right now (T) has a lot of work to do. The negative points about the company outweigh the positive. This is only a starting point, so ensure you research and analyze before investing. I believe AT&T has to implement better use of their FCF, lower their debt, generate better returns for their shareholders or they will be painfully looking at their market value fall into a quiet and deathly take over. Therefore, we will only trade (T) with a dividend catch strategy. The only way to consider a long-term position is if the price falls below $20.

Now, begin your Road to Wealth!

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Empresa Tabacalera Pagando Altos Dividendos CubreTus Gastos

Hay todo tipo de inversiones en el mercado de valores, incluidas las empresas tabacaleras. Puedes aprovechar la oportunidad independientemente si fumas o no. Si fumas, le mostraré cómo hacer que estas empresas paguen por tu dosis. Si no fuma, no se preocupe, le mostraré lo mismo. La diferencia es que usará el dinero para cualquier otra cosa que desee y no para un paquete de cigarrillos o tabaco de mascar.

            Los principales jugadores son (MO) Altria Group Inc, (PM) Phillip Morris International Inc y (BTI) British American Tobacco. Cubriremos (MO) y (PM) en otro artículo; y nos concentraremos en (BTI) British American Tobacco.

Obtenga acciones gratis cuando abres una cuenta con Robinhood.

            El negocio de (BTI) British American Tobacco se ha mantenido estable a lo largo de 2020 y 2021. Actualmente, (al 14 de diciembre de 2021) se cotiza a $36 dólares y tiene un dividendo alto del 8.2%.

            Mirando sus fundamentos, vemos que BTI tiene más de 55,300 empleados, lo que la convierte en una empresa grande y estable. Su crecimiento de ingresos es de alrededor del 5%. El precio actual (P/E) a las ganancias es de 10.27, lo que la convierte en una inversión deseable y, hasta cierto punto, sub-valorada (míralo como un descuento).

            Tienen deudas pero nada fuera de los procedimientos operativos estándar. Suficiente efectivo para cubrir los gastos, aunque preferiría ver un coeficiente rápido (0.40) y un coeficiente actual (0.80) más altos. Tienen un uso excelente del precio (P/FCF) para el flujo de caja libre a 19.62. Confía en mí. He visto cosas mucho peores.

            ¡Los márgenes son sólidos! Margen bruto 83.40%, margen operativo 38.10% y margen de ganancias 24.10%. Y la tasa de pago es un 59% redondeado. Lo que significa que pueden seguir aumentando el dividendo. Lento pero seguro.

            Espero que la relación Deuda Neta / EBITDA vuelva a su rango objetivo, lo que generará más ganancias de capital en 2022. Esto incluye recompras de acciones, y la administración apoya esta opinión.

Desde la comodidad de su hogar, invierta en cualquier lugar de los Estados Unidos con Fundrise.

Ahora bien, ¿cómo nos pagan?

Antes de comenzar, responda esta pregunta: ¿Ha masticado o fumado dos paquetes a la semana durante 12 años o más?

            Si es así, sepa que les ha dado a estas empresas tabacaleras la cantidad que necesitaban para que esta inversión funcionara, y no tiene nada que mostrar, excepto un par de pulmones moribundos o encías gastadas. No te juzgo; haces lo que quieras con tu cuerpo. Solía ​​mascar tabaco y mi abuela todavía fuma. ¿Desearía que no lo hiciera para mantenerla en la tierra un poco más, posiblemente? Sí. Sin embargo, ella es una adulta y respeto sus decisiones.

Nota 1: Si fuma más de 2 paquetes por semana, usted alcanzó este número en menos de 12 años.

Nota 2: aunque hago hincapié en fumar, puede ejecutar los números si también mastica tabaco.

Te daré la fórmula para que averigües lo mismo con todos tus vicios.

Obtenga dividendos en efectivo de empresas reconocidas y establecidas.

¡Aquí vamos!

            Usando números de Texas, un paquete de cigarrillos cuesta $6.69 y agrega impuestos, y usted paga $8.10. Entonces, fumando 2 paquetes por semana, gastas alrededor de $16.20 por semana. Redondeemos eso a un mes y obtenemos $64.80. Eso es lo que gasta mensualmente en Texas cuando fuma 2 paquetes por semana.

            BTI paga un dividendo trimestral, por lo que multiplicaremos tus gastos de $64.80 * 3 y llegaremos a calcular que estás gastando $194.40 en productos de tabaco cada tres meses.

            Al precio actual de $36 y un pago de dividendos de $0.745 por acción, necesitará 261 acciones; o una inversión de $9,396.

            ¡Recuerda! Probablemente ya le diste esta cantidad de dinero a las empresas tabacaleras y ni siquiera te diste cuenta. Sin embargo, haremos algo mejor. Comenzaremos a invertir en estas empresas y comenzaremos a cobrar dividendos.

¡NO! No necesita esta cantidad total para comenzar. Hay muchas formas de hacerlo.

Cubramos algunas ideas:

            1. Cada vez que compra un paquete, debe depositar la cantidad exacta que gastó en su cuenta de inversión. Si no tiene suficiente dinero para hacer ambas cosas, no debe gastar su dinero en algo que no lo beneficiará a usted ni a su salud.

            2. Establezca depósitos automáticos, ya sean semanales, quincenales o mensuales, iguales o superiores a la cantidad que gasta en este producto.

            3. Pague una suma global. Sé que es menos probable que tengas esta cantidad de dinero sin hacer nada, pero nunca se sabe.

Bono 1:

            No pierda el tiempo recibiendo el dividendo en efectivo y comprando acciones manualmente. En su lugar, verifique cómo configurar un plan de reinversión de dividendos (DRIP) con su corredor. El sistema invertirá automáticamente su dividendo en sus acciones que pagan dividendos, y no tiene que mover un dedo.

Bono 2:

            Una vez que alcance las 100 acciones de la misma acción, aprenda a vender ‘covered calls’. Es una gran estrategia de ingresos y lo ayudará a alcanzar sus metas más rápido.

Nota 3:

            Comenzaremos dos canales de YouTube en 2022. Un canal en inglés y otro en español. Repasaremos todas estas estrategias y usted puede aprenderlas e implementarlas usted mismo. ¡Manténganse al tanto!

Sea un propietario en cualquier lugar de los Estados Unidos, sin complicaciones.

Resumen:

            Puede investigar una acción que pague dividendos de su agrado y seguir los pasos anteriores. Luego, cuando alcance su meta, apague el DRIP y comience a recolectar los dividendos en efectivo para hacer lo que quiera con su dinero. Por ejemplo, puede hacer que la empresa pague sus gastos de tabaco o para los no-fumadores; Puedes usar este dinero para hacer lo que quieras.

¡Ahora, comience su camino hacia la riqueza!

Deja tu comentario a continuación. Si te gustó, compártelo en las redes sociales y ayuda a otros a tener éxito también. Su éxito será el resultado de dos cosas: conocimiento y acción.

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Disclaimer: Lea nuestra política de divulgación aquí. Esta publicación contiene enlaces de afiliados y yo gano con las compras que califican sin costo alguno para usted. Existe un alto grado de riesgo involucrado en la bolsa de valores. Los resultados pasados no son indicativos de rendimientos futuros. Road-to-wealth.com y todas las personas afiliadas a este sitio no asumen ninguna responsabilidad por sus resultados comerciales e inversiones. Los indicadores, estrategias, columnas, artículos y otras características son solo para fines educativos y no deben interpretarse como consejos de inversión. La información para cualquier observación comercial se obtiene de fuentes que se consideran confiables. Aún así, no garantizamos su integridad o precisión ni garantizamos ningún resultado del uso de la información. El uso que usted haga de las observaciones comerciales es bajo su propio riesgo y es su exclusiva responsabilidad evaluar la precisión, integridad y utilidad de la información. Debe evaluar el riesgo de cualquier operación independientes con respecto a los valores mencionados en este documento. No somos asesores financieros y esta publicación es solo para fines educativos. Invertir conlleva riesgos. Asegúrese de visitar a un profesional que pueda diseñar una mejor estrategia para cumplir con sus objetivos personales y circunstancias actuales.

START LIVING YOUR REALITY

“The biggest risk is not taking any risks” Mark Zuckerberg

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We all want to live before we die, right? That means that at some point, we have to stop trading away our time for dollars. Money is important but we need to stop working for a salary or a wage and figure out how to make money work for us!

First thing is, you need to be honest with yourself. Answer the following questions with all honesty and see where you are. Just a simple Yes or No.

1. Do you operate your household with a budget?

2. Do you know how much debt do you currently have? (Total debt)

3. Do you routinely pay your bills on time?

4. Do you have savings for an emergency? (At least $1,000)

5. Do you have a plan for tackling your debt?

6. Do you regularly charge your credit cards because you spend more than your paycheck?

7. Do you hide bills from your family?

8. Have you been turned down for credit/loans?

9. Do you prefer to buy fun things today than buying assets for the future?

10. Do you think the government and social security should provide enough to cover your expenses in retirement?

See how you did…

If you answered ‘Yes’ to questions 1-5, that’s great! You are already taking control of your cash flow…

If you answered ‘No’ to questions 6-10, that’s also great! … You have the right mindset and probably just need a little push…

If your answers are mixed, you have some work to do…

If your answers are completely inverted, You are headed toward financial disaster. You need to re-evaluate your life big time.

At first, it is difficult to change your bad habits. You bet it is. But your life can dramatically change for the better and it all depends on you. See how you spend your time and that will give you an idea where your life is headed.

I come to figure out in my 30’s, that I do like to read. As a young person, I thought I didn’t like to read. Actually, I figured out that when it comes to making my money grow faster and faster, I can’t stop reading once I start.

Everyone is money-oriented. Some to spend, some to accumulate. The difference is financial knowledge and literacy. The ones that read about money and apply it in real life, get ahead of the game. The ones that not, live through struggle their whole life.

I will make several recommendations of books that I have read and have been illuminated by new knowledge that when I started putting it all together, my life started to change for good. There is no stopping now.

Note: Although it was not the first book I read, it is highly recommended you start with Twelve Pillars for a solid foundation…. but getting back to the article…

The first book I read was:

#1. How to make money in stocks by William J O’Neil – in short, he follows and shows how to use the CAN SLIM formula (yes, it’s an acronym), uses both a few fundamentals and a little bit of technical analysis. He doesn’t use a get rich quick scheme. Slow and steady wins the race.

#2. How to make money in stocks complete investing system: your ultimate guide to winning in good times and bad. Also by O’Neil.

#3. The intelligent investor by Benjamin Graham – he teaches you to keep emotions under control and invest like an intelligent individual. No high IQ needed, or inside information or luck. You can’t ignore that some of his disciples have shown the possibilities when you put it all together. Like who you said? Nothing more than Warren Buffett who says this is the best book in investing ever written by far. Mr. Buffett is currently the 3rd richest person in the world with over $80 billion dollars.

#4. The millionaire next door – opened my eyes to the possibility that anyone with any type of income sources can get to where they want if they so desire. No high income is needed because everything comes down to your spending and savings habits. It shows you a simple formula to measure your wealth! Now, you will instantly know if you are ahead of the game or not. Are you a PAW, AAW or UAW?

#5. Rich Dad Poor Dad by Robert Kiyosaki – has expanded my knowledge to immense proportions. In summary, Robert’s real dad (poor dad) and his best friend’s dad (rich dad), shaped his life with the way they see money and investing. You don’t need big degrees or high incomes to be rich. You just need financial literacy about money and how the rich make money work for them and not the other way around.

I’m telling you, if you start with these 5 books, you will be way ahead of 80% of individuals I know because no one wants to read. If you feel like one of those too, let me show you a trick; read 10 pages every night before you jump into bed. For example, the millionaire next door is 270 pgs, at 10 pgs per night you will finish it in 27 days. Just under a month, you will have new knowledge that if applied, you can start your own road to wealth.

Knowledge is power, only if put into action. You can know it all, but if you don’t start, it just goes to waste. Don’t be one of those 10 years from now saying, only if it would have started earlier.

I’m glad I didn’t wait that long but still would have loved to have all this knowledge when in college. My life would have been even better than what it is right now, which is not bad at all. I mean, I just doubled my wealth in 2 years and 8 months.

Don’t be left behind. Jump on the bandwagon and give me company on this journey in the road to wealth.

#BONUS#: We spoke about habits earlier. If you want to pick up good habits, you might want to check “The 7 habits of highly effective people“.

To our wealth! Leave your comment below.

Remember, it’s all about the road to wealth. If you liked it, pay it forward. Don’t forget to share it on social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.

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PILLARS, SOLID FOUNDATION FOR GREAT SUCCESS!

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Yesterday I attended a Woman’s Equality Luncheon (Equal Opportunity Program for the Army). The guest speaker spoke eloquently about women rights and how long it took to get where it is today.

There were lots of failures and sacrifices but if there was one thing they all had, was the courage to fight for what they wanted.

I ask you today, what is it that you want?

If it is financial freedom, I encourage you to find within yourself the courage to make the necessary changes in your life, as all these courageous women did for years.

It won’t be easy, and it will take time, but in the end, you will look back and see how far have you gone and how much have grown since you made your choice.

Let’s start by making this point very clear: If you are going to get out of the rat race (a term used from Rich Dad Poor Dad), your cash flow has to exceed your expenses. But…

Do you know what your monthly cash flow is today?

What is your monthly cash flow goal to get out of the rat race?

The answers to the previous questions are important.

But first, you need to build a solid foundation for success; pillars. Twelve pillars to be exact.

The book “Twelve Pillars” by Jim Rohn and Chris Widener explains it in detail.

The pillars are based on the following:

#1 – Work harder on yourself than you do on your job

#2 – Total Well-being

#3 – The gift of relationships

#4 – Achieve your goals

#5 – Proper use of time

#6 – Surround yourself with the best people

#7 – Be a lifelong learner

#8 – Life = sales

#9 – Income seldom exceeds personal development

#10 – Communication is key

#11 – Be a leader

#12 – Leave a legacy

CONCLUSION

You got a head start, but you need to dig in and get the details of this great book. You have to show how bad you really want it. Success is not easy, and there are no short cuts.

To our wealth! Leave your comment below.

Remember, it’s all about the road to wealth. If you liked it, pay it forward. Don’t forget to share it on social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.

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If you have any questions, you can reach me at questions@road-to-wealth.com

YOUR DEBT, IS IT GOOD OR BAD?

“If you can’t explain it simply, you don’t understand it well enough” Albert Einstein.

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Hello friends, we haven’t talked for more than a month. And I already missed you all. I can tell you quickly that I live in a new state due to work. The months of June and July have been crazy. On top of that, I signed up for real estate classes and other types of investments.

Obviously, as long as my knowledge expands, I will be sharing with you so that we can all progress. Among many other things that are new to me, I learned that there are two types of debts. All my life I thought all debt was bad.

Before getting into debt, I have to say that managing your money is just the beginning. Then comes the interesting thing, learn about money and how to make it work for you while you are not present.

We have to recover our cash flow and use it to obtain assets that give us money back, that work hard to generate more money for us. Not objects that take money out of our pockets. That is the magnificent secret of security and financial freedom.

What nobody tells you…

Debts are divided into two types, good and bad. Most people learn to have bad debts.

Debts are like everything in life. Depending on how you use it, it can be good or bad.

A gun can be good or bad depending on the person who uses it.

Drugs can be good or bad depending on how the person uses them.

If you do your part and learn how to use debt, it can be your slavery for life or your independence for life. You choose.

What are bad debts?

Bad debts are personal loans, car or home loans, student loans, and credit cards.

Why are they considered bad debts?

Because they only take money out of your pocket and in the end, they don’t have the same value as when you bought them.

The plan is to get out of all your bad debts, and when you get out of all your bad debts, then you will get more debts. Whaaaatttttt?!?!

It is true, but this time you will get good debt.

What are good debts?

Good debt comes in many forms. Good debts are those that can give you financial freedom in the future. For example, you buy an apartment to rent it. Yes, it is a debt, but it has several points in its favor.

#1. The payment of your loan does not come out of your pocket. You have a lease that pays your debt. In the end, when the loan is repaid, you are the owner of an apartment and it can produce passive income for the rest of your life and perhaps your children after your die if you have not sold it. Best part is, nothing came out of your pocket. That is how wealth can be passed down from generation to generation.

#2. You get equity or value in the apartment over the years. So, if you decide to sell, you can earn capital gains.

#3. You have government tax breaks because you are providing a service/lodging.

#4. You can repeat this cycle as many times as you want, until you receive enough in passive income to the point where you do not depend on a job and can retire early and enjoy life.

Now that is real security and financial freedom.

As you can see, this type of debt is what the rich use to get richer.

If you focus on blaming the government, you think that social security should maintain you in your retirement years, you dedicate yourself to studying and continue to accumulate student debt; I am sorry to tell you that you will never rise from being poor or middle class.

To enter the group of those who have wealth, you have to learn about money and how it works. Do not be left behind.

For today, we have learned that not all debts are bad. I will return soon with more so we can all progress.

Until next time.

To our wealth! Leave your comment below.

Remember, it’s all about the road to wealth. If you liked it, pay it forward. Don’t forget to share it in social media and help others become successful as well. There is plenty of room for all of us. In the end, your success will only depend on you and not what others do.

Follow me on TWITTER, PINTEREST, INSTAGRAM, LINKEDIN, FACEBOOK for more posts and updates.

If you have any questions, you can reach me at questions@road-to-wealth.com