As we learned from Citigroup Tuesday, you can’t always trust a company’s dividend. But that isn’t the case with AT&T , Cramer said.
The telco has been a Mad Money favorite for some time, along with Verizon Communications and Altria, for its regular payout. But now there’s another reason to like the company: A misinterpretation of comments made by CEO Randall Stephenson has punished the stock.
Stephenson mentioned at a conference last week that consumer business had seen a slowdown, but he didn’t expect it to affect his business, mainly because other divisions like wireless were going strong. Wall Street overreacted anyway, though, taking the comments as a preannouncement to the downside.
Cramer has since spoken to the AT&T CEO, and Stephenson was emphatic that his business was doing just fine and investors had nothing to worry about. So now the stock is down 12% from its high, and T’s performance is all but guaranteed by its chief executive. It’s an opportunity too good to pass up, Cramer said.
He’s always recommended dividend-paying stocks for the income they provide. Plus, they minimize the downside to an investment. And with a 4.2% yield, AT&T is worth a look by any Homegamer.
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