Hoping AT&T Hangs Up on Its European Strategy

We have liked AT&T (T) as a conservative, dividend-oriented investment, discussing it twice in the past year. It has been an okay investment, up 4.2% year-to-date, and has paid a healthy 5% dividend yield while investors wait. We were comfortable with the business progress as reported in the past quarter and have looked for the stock to continue as a slow and steady performer going forward.

However, there is one negative to the investment case that has started to gain a lot of traction in the past week. After months of market rumors and hints by the company, AT&T more formally put the investment community on notice that it has a serious interest to expand in Europe. The most likely path would be to try to buy Vodafone's (VOD) remaining assets after that company sells its Verizon Wireless stake to Verizon (VZ).  From AT&T's perspective, this deal would make it a global player and enhance its long-term growth prospects....503 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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