One of the many reasons AT&T is at the foundation of my portfolio
If you have a second, check out Rolling Stone’s 100 greatest TV shows of all time. Needless to say, there are some damn fine shows in that group. In addition to the quality, though, a fair amount of them have something else in common. Care to guess what that is (most of you can probably figure out the correlation from the title of this blog post)? Yeah … AT&T, since purchasing HBO, owns the rights to a lot of them.
The first show on that list, clocking in at No. 100, is Eastbound and Down. If you like classic Danny McBride comedy, or are a big fan of baseball – or like both like me – you need to check it out if you haven’t already. The episodes are short and pretty shallow, so you don’t have to really zero in on them or exert too much emotional energy … it’s the perfect show to just kinda chill out to at the end of a long day.
The next show, OZ, also aired on HBO, although it’s not one I’m as familiar with.
Fast forward to the top of the list and you get some real powerhouses, with The Sopranos and The Wire clocking in at 1 and 2, respectively. And I haven’t even touched on Game of Thrones, which I believe was somewhere in the 10-20 range, Deadwood, which is as solid a western show as I’ve seen, and Big Little Lies. That last one is my wife’s favorite, but I’d be lying if I told you I wasn’t into it a little as well.
Anyway, the point is this: AT&T owns the rights to some of the greatest TV shows of all time. It owns shows young people like. It owns shows old people like. It owns the rights to shows that take chances and don’t avoid controversal subject matter. It owns the rights to shows people are watching and shows people will continue to watch and talk about for decades. Again, we’re talking about some of the greatest TV shows of all time.
I could spend a lot longer talking about AT&T and why I believe it’s a good investment. Couple the content rights with cell phone service and the impeding transition into 5G and you have a money-printing machine. It already practicaly prints money … just imagine what the company can do once it pays down its massive pile of debt (one of the reasons a lot of people don’t like the company as an investment). What those people may not know, though, is that AT&T said it will pay off 75% of the $40 billion debt it raised to pay for Time Warner by the end of this year.
Growing my portfolio as I watch great TV
I started my march toward a $1,000,000 portfolio with a $500 deposit, some of which I used to buy five shares of AT&T (T) as I want it to be a staple of my portfolio.
I spent the next couple week’s building up my position in Fifth Third Bank. This past week, meanwhile, I added five more shares of T, doubling my position while increasing my forward annual dividend income by $10.20 ($2.04 annualized dividend per share). My 10 shares, which I bought at an average price of $33.01, are worth $343 and make up 39% of my portfolio. That number will obvioulsy fall as I diversify a bit, but I’m comfortable with it for now.
AT&T’s ex-dividend date is July 9, so I’ll probably sit on my 10 shares for a bit and start adding to the third pillar of my foundation: General Motors.
Here’s why: One of my goals when I started this march was to increase my forward annual dividend income each and every month. To do that, I have to pay attention to the way I’m constructing my portfolio. My 12 shares of Fifth Third Bank (FITB) will earn me $2.88 this month. That $2.88 dividend payment will be my first, so I want to make sure I make a little more in August, which I’m already in position to do as my 10 shares of AT&T will earn me $5.10 ($0.51 per share). I want a number that’s higher than $2.88, but not too high to keep eclipsing month after month. I think $5.10 is perfect.
My next steps
That said, now I have to make sure I earn more than $5.10 in September. That’s where General Motors comes in. I currently have 5 shares which will produce $1.90. That won’t get it done. To get past $5.10, I’ll need to grow my position to a size that will produce at least another $3.21 in quarterly income. To do that, if my math is right, I’ll need to buy at least another nine shares by GM’s ex-div date of Sept. 6.
Now, if you’ll excuse me, I have some shows to catch up on.
March with me
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