Communications heavyweight AT&T (T) is a safe stock to consider in this highly volatile market. While AT&T is fighting AMC Networks (AMCX)over its U-Verse contact, the company is also rolling out its enhanced Push to Talk Solution. In this article, I will show how AT&T is one of the best defense stocks available on the market today.
AT&T has proved that it can be profitable, as it’s up 16.6% this year. With a dividend yield of 4.99% it has done investors very well. However, as it sits near the high end of its 52 week range I just don’t see too much more space for AT&T to go up. It will keep its strong standing through the next quarters, but I don’t see it breaking $38.
Perhaps the biggest development is the fight between AMC Networks and AT&T over the negotiations of the companies’ U-verse contract. AMC Networks, most known for popular shows Mad Men and Breaking Bad, is seeking much higher prices from AT&T’s Dish Network to continue to offer the channel. It is worth stating that both of these shows are highly regarded and have very high viewership, putting AMC Networks in a fantastic bargaining position.
The negotiations are beginning to turn ugly, with the spokesperson from each company bringing accusations into the public. It appears the main sticking point is that AMC Networks is charging Dish almost twice as much as it chargers other content providers.To continue reading, click here.