Thread regarding AT&T layoffs

@2zdl, if you are trading within your 401k brokerage account, I would suggest ridding yourself of one or the other. Owning both stocks is a waste of financial resources as both companies pretty much walk the same path. Though I am loyal to the T, i don’t suggest which to jettison, both stocks are dividend value plays, not growth vehicles and have traded within a somewhat narrow range for almost 20 yrs.

I learned a long time ago that I was not suited as a stock trader and if you’re seeking advice, as to when to pull the trigger, maybe you’re not either. I changed course to long term, dollar cost averaging, both in and out of my 401K.

I would suggest you let your dividend payers reinvest in themselves, add to those positions from your pay on regular cycle and use the company match selections to continue the process....it adds up! And above all, don’t be a paralyzed investor, recessions have a way of doing that....put your choices on auto pilot, but always watchful.

I’m nearing retirement, but I was always of the opinion that the stock market would always be higher ...anyone who truly doesn’t, should not be a long term investor, that’s why we have mattresses.

Good luck

Everything depends on when someone gets into the stock. I got in at $32, so it's not fantastic, but I think the dividend yield puts a floor on the price. So, I'm toying with the idea of getting some more. I got VZ at $45 - it's doing well - time to sell?

I like buying when people are selling, and selling when people are buying.

Companies that bay back srock are the ones that have piles of cash stashed, Apple, Google, Amazon, no quite AT&T's Superpile of debt, LMAO

The more conservative approach includes slashing the dividend in half, cutting costs through mass layoffs and attempting to sell off assets, And use the proceeds from selling businesses to pay down debt.

But what you are proposing to buy back stock eventually destroys value, lowers earnings base and spikes company leverage, in effect will compound its financial problems by returning vast amounts of extra cash to shareholders through buybacks and dividends rather than paying down debt.

See what happened to GE?

Between 2010 and 2017, GE spent about $42 billion to buy back its own stock, according to FactSet. That is AT&T future

T should do a stock buyback before considering cutting the dividend. Easy way to reduce their expenses of paying the dividend is to pay it for fewer shares.

T should do a stock buyback before considering cutting the dividend. Easy way to reduce their expenses of paying the dividend is to pay it for fewer shares.

If T cuts the dividends,all your aunts and uncles and grandparents are gonna sell their shares asap.Not muy bueno !

@wzk you only have a loss if you sell the stock while the price is less than you paid for it.

@tgz, on paper you would have a loss, unless the company files for bankruptcy and cancelled its common shares, you loose nothing really and your yield just went up from 6%. As they said T is a dividend stock not a growth stock. I do understand the angst since the stock price probably reflects the lack of confidence the market is showing in T.

that would be acceptable for a company with organic growth, but AT&T is not one of them, the stock remains at the same 10- year levels, do previous performance is a good indicator?, absolutely, in a year from now the Dividend will be cut, FACT- the Stock will tumble, and you will have no time to recover, That is you have still 15 years to retire, so I call the previous claim pure BS paid by T

Because after the stock has already dropped 20% it is a good deal! Buy low, sell high.

@pod, it's a purchase for personal cashflow, not business. If you are retired, it can be better to purchase dividend stocks and use the dividends as income. How would would you pay for a $50 electric bill with a $1000 share of Amazon? Cash out the entire share and have a surplus $950 in your wallet? That $950 wouldn't be doing anything for you. Would you evaluate your entire portfolio to see which $50 stock was the best to sell, while calculating opportunity cost? Or would you use the dividends like an annuity, and pay the $50 out of dividends?

https://www.cwa-union.org/sites/default/files/2018attsurplusannouncementwindows.pdf

Could not agree more, everypne acts like AT&T is ,the only stock outhere, wakeup people! You could sleep much better knowing that dont need to worry about this mo--n running this failed company

https://finance.yahoo.com/news/without-time-warner-t-stock-153645936.html

Bingo, T is a loser stock, buy something else.

@pod, I get all that but it seems to me that the 6% is only aiding in breaking even since the stock price dropped. This, while the div is a good thing, does not help the overall account to grow since the loss in stock price continues to take. Btw, I am quite good at math and simply view it differently. For example and hypothetically, the stock could fall to $10 a share and although the div paid out on shares remains the same, one just lost say $20 on share price which makes the investment nonprofitable.

apparently math or logic is not you'll strong suite. if the dividend is a fixed amount how is it helping either share price or cash flow? duh. two things helps cash flow. 1) lower dividend, 2) higher profit. #2 is done with either lowering expenses or increasing sales or both. sales seems to be either growing slowly or actually going down so its lowering expenses that the company seems to be relying on. unless revenue grows the share price may not budge much unless investors believe that it will start growing eventually. for now it appears they don't since the stock seems to be stagnant.

It makes sense as a cash flow investment. You acquire new dollars without having to draw down your principle. It is actually better for long-term cashflow because you can reinvest the dividend to acquire more shares than you could with a higher stock price.

The dividend is a fixed amount per share, not a fixed percentage of price.