AT&T: Investment Funds in Common Stock

Having an emergency fund plan will help individuals decide on the investment type that will yield higher returns. Investing in companies that have a positive reputation and sound financial performance is also paramount to an investor. AT&T is one of the leading multinational companies in the United States, with its headquarters in Whitacre Tower in Dallas. It is one of the companies that has a positive financial performance, based on the financial information obtained from the company for the past years. Its financial performance has increased in recent years due to modern technology, giving it a competitive advantage.

However, COVID-19 has affected businesses worldwide, and AT&T has remained competitive with healthy financial results throughout. The adjusted earnings per share reveal positive results, that is, only $0.03, a minor change that cannot negatively affect the shareholder’s equity. It has many revenues for the year 2020, which were estimated to be around $41 billion. Furthermore, there is still free cash flow from various activities that are carried out within the organization. This ensures continued carrying out of the business activities, including financing significant projects, issuing bonds, and many others that will be beneficial to the company. It offers a ready market for potential investors and is prepared to build its trust with such individuals. The company also has low debt rates, which has made its flat sheet remain positive over time.

It has an annual expenditure of over $100 billion on its expansion and many other activities to improve its network. For this reason, the company has secured business all over the country and many other parts with the low network coverage. It seeks to expand its services even more with the support that the government is giving organizations. Due to the organization’s financial performance, it is worth investing in the common stock of AT&T. Improved financial performance means that the company can pay dividends for the shares issued to the investors. Its financial goals and future expansion to achieve a competitive advantage greatly motivate potential investors. Any business organization that has future expansion goals is an excellent attraction to the investors. It is also a public company that will offer its common stock to the public to gain enough capital for expansion.

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