BUY T @ $24.40

Buying T @ $24.40

Adding 2%

4% position

T is down 5% today, though still above my initial purchase price. They gave some details on their dividend policy going forward and debt metrics.

Dividend to be $1.11 post-spin. That's a 4.5% yield at this purchase price. But the spun-off shares will have some value - estimates I've seen range from $3-9/share of T. Let's call it $5, for argument's sake.

So T will pay a dividend of $1.11 on shares worth $19.40 - that's a 5.7% yield. Which is about where T shares have traded in recent years on a yield basis and a higher yield than VZ...and a better balance sheet than T has had in that same period.

I'm a buyer of T on any weakness until the spin.

I also plan to sell any spun-off shares - I don't need exposure to the streaming media segment.