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In addition, its Advertising solutions segment publishes yellow and white pages directories; and sells directory advertising and Internet-based advertising and local search. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005 as a result of merger with AT&T Corp. AT&T Inc. was founded in 1983 and is based in Dallas, Texas.

OK, the latest headlines don't look so good for big T. It lost out on its attempt to buy T-Mobile USA from Deutsche Telekom and had to pay a $4 billion break up fee, $3 billion in cash and $1 billion in spectrum access. The charge will be taken in the fourth quarter. Having dropped the pursuit of T-Mobile, that takes away the concern over a Justice Department antitrust investigation the proposed purchase perpetrated. Some analysts think AT&T could propose the deal again in a few years when the antitrust mood in Washington has changed. That's some of the bad news.

The good news is that the company is now free to pursue other avenues, such as buying a 700MHz spectrum from Qualcomm for $1.9 billion and persuading lawmakers to approve new spectrum availability for mobile broadband. Demand for mobile broadband services is skyrocketing and shows no sign of fatigue. More good news: AT&T entered into a new roaming agreeement with Deutsche Telekom to broaden its reach. As the CEO, Richard Stephenson said: "The mobile Internet is a dynamic industry that can be a critical driver in restoring American economic growth and job creation, but only if companies are allowed to react quickly to customer needs and market forces."

Even more good news: Smartphone sales are ramping. The company sold 6 million units in October and November, a new record. Broadband usage is growing rapidly. T's U-verse video service that offers high speed Internet, digital home phone and advanced digital TV service is hearing the phone ring off the hook. Analysts see all of these areas growing over the next several years.

The dividend is relatively safe. Cash flow is strong with operating cash flow for the last 12 months of $36.79 billion and levered free cash flow at $8.3 billion. Current payout is $1.76. The dividend was raised every year since 2004 when it was $1.25. The company has a long history of hiking the dividend annually, interrupted only once, in 2004 when it went to $1.25 from $1.37.

Earnings aren't expected to jump any time soon (especially in the fourth quarter as the one time charge for the failied T-Mobile attempt hits the books). Last year, they were $2.30. For all of 2011, 36 analysts see $2.25, then forecast $2.45 for 2012. Fourth quarter results should be 45 cents a share (expected out on January 26). For the first quarter of this year, look for 60 cents a share, up from 57 cents in last year's first.

Essential numbers:
- Market Cap: $180.39 billion
- Trailing P/E: 15.46
- Forward P/E: 12.44
- Price/Sales ratio: 1.43
- Price to book ratio: 1.58
- Operating margin: 16.16%
- Profit margin: 9.32%
- Return on equity: 10.54%
- Return on assets: 4.64%
- Total revenues for the last 12 months: $126.58 billion
- Total cash: $10.76 billion
- Cash per share: $1.82
- Total debt: $71.23 billion
- Total debt to equity: 62.54%
- Current ratio: .84
- Book value per share: $19.17
- Beta: .55
- 52 week change: 1.33%
- Shares Outstanding: 5.93 billion
- Float: 5.92 billion
- Dividend Payout ratio: 87%

T should appeal to conservative investors. There's lots of cash and strong cash flow. While the T-Mobile acquisition (or more precisely the lack of it) had an expense price for failure, expect management to keep growing services as it tries to keep up with demand. T is in an industry that has flourished no matter what the rest of the economy did.

- Company Web site: