- AT&T recently reported solid Q2 2019 results that were well-received by the market.
- I will take a look at the 2 metrics that are key to the long-term bull case for this company.
- I hold a position in AT&T, and I plan to stay long the stock.
AT&T's ($T) stock has slightly outperformed the broader market over the last year. The last five years is an entirely different story, as T shares are down 5% while the S&P 500 (SPY) is up almost 50%.
However, looking ahead, I believe that there are legitimate reasons to stay long the stock with the company's rich (and supportable) dividend being on the top of that list. Having said that, I believe that investors should pay close attention to the two key metrics, i.e., free cash flow and financial leverage, that will have a material impact on the investment thesis. To this point, investors should be encouraged by the fact that AT&T has been able to report improving results for these two key metrics over the last year.
It also helps the bull case that the company reported solid Q2 2019 earnings results.
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