DescriptionDate
1/6/2011
4/6/2011
7/6/2011
10/5/2011
1/6/2012
4/5/2012
7/6/2012
10/5/2012
1/8/2013
4/8/2013
7/8/2013
10/8/2013
1/8/2014
4/8/2014
7/8/2014
10/8/2014
1/7/2015
4/8/2015
7/8/2015
10/7/2015
1/6/2016
4/6/2016
7/6/2016
10/5/2016
1/6/2017
4/6/2017
7/6/2017
10/6/2017
1/9/2018
4/9/2018
7/9/2018
10/9/2018
1/9/2019
4/9/2019
7/9/2019
10/9/2019
1/9/2020
4/8/2020
7/9/2020
10/8/2020
1/8/2021
4/8/2021
7/8/2021
10/7/2021
Dividends
0.43
0.43
0.43
0.43
0.44
0.44
0.44
0.44
0.45
0.45
0.45
0.45
0.46
0.46
0.46
0.46
0.47
0.47
0.47
0.47
0.48
0.48
0.48
0.48
0.49
0.49
0.49
0.49
0.5
0.5
0.5
0.5
0.51
0.51
0.51
0.51
0.52
0.52
0.52
0.52
0.52
0.52
0.52
0.52
year
annual dividends
2011
1.72
2012
1.76
2013
1.8
2014
1.84
2015
1.88
2016
1.92
2017
1.96
2018
2
2019
2.04
2020
2.08
2021
2.08
2022 expected
2.12
annual growth rate
2.33%
2.27%
2.22%
2.17%
2.13%
2.08%
2.04%
2.00%
1.96%
0.00%
1.92% expected
option 1
option 2
option 3
option 4
option 5
option 6
g
1.9231% expected growth rates for next year
0.0000% growth rate for the current year
1.9207% 10-year average
2.1341% 10-year average excluding outliers of 2021
2.0212% 5-year average excluding outliers of 2021
1.360% Fundamental growth rate = gf = plowback * ROE = (1- payout ratio) * ROE
4.37% ROE Return on Average Equity, 5-Yr Average
3.02 EPS for 2021
2.08 Dividend for 2021
69% Payout ratio
source: Factiva
source: SEC EDGAR
source: finance.yahoo.com
AT&T
Beta
estimation period of required return
annual risk free rate
annual market return
required return R = annual risk free rate + beta*(annual market return – annual risk free rate)
R=
D0 =
g=
V0 = D0*(1+g)/(R-g)
market price 10/26/21
Observation (buy/sell/hold)
0.73 source: finance.yahoo.com
1/1/2015 – 12/1/2019
1.06%
10.55%
7.99%
$
2.08
1.360% g
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