Sold my last batch of stock today. Maybe it was a good idea or maybe it wasn't but there is so much negativity and dishonesty surrounding this company and with their debt load I honestly see them imploding sooner rather than later. My guess is the dividend will have to be cut and I'm not waiting for the stock to bottom out. This stock lingers too much below avgs and the way their losing customers, it seems inevitable. While the div may pay a bit, the overall loss in price counters. Call me dumb for pulling out if you like. I don't care. We'll see who has the last laugh.
18 replies (most recent on top)
A comparison was made that owning T stock, over the short term (1-2 years) would cost you 21% and on paper that is absolutely true. It’s also not the kind of stock you want if you plan on raiding the 401K, or plan too, soon into retirement.
Many will survive the downsizing and go on to enjoy (perhaps endure is a better word) a long stay with AT&T. I know, I can here the words I’m saying but it happens.....I came here in the mid 80s, dollar cost avg’d with ONLY the company match to my 401K and built that into a nice amount.
If you are a long term investor, T (which was a growth stock back then) isn’t scary. It’s a nice 6% CD, nothing more or less. It’s a “Buy and forget” stock which you can use to anchor your portfolio while investing with your paycheck into 401K.....but long term thinking takes patience, not many people have that.
"In the last 12 months (current date is 05/07/18)" should have read 05/07/2019.
In the last 12 months (current date is 05/07/18) T is down 3.7%. Now about half your dividend is used just to get even. And over the last 2 years, down almost 21%, so it will take over three years to recover if the dividend stays where it's at. And over 10 years, it has grown only about 21%. Owning a low-risk S done that.
Unfortunately, investing requires taking into account Federal Reserve rigging of debt markets. With the Fed holding interest rates below the rate of inflation, and President Trump urging the Fed to print money to purchase debt, which lowers interest rates, this makes dividend stocks more attractive.
Screwing around with the price discovery in debt markets results in price discovery changes in the stock market, especially with dividend paying stocks.
I like T at $30.00. I think at that price, the DirectTV debacle has been taken into account. I noticed that Vanguard and BlackRock took an interest in T last February according to the SEC site, and I believe they're chasing dividend too.
The Fiber buildout that AT&T told the FCC that they would do should end in July - probably winding down now, judging by the prem tech layoffs. That means more money can be spent paying down debt.
I'll consider selling at $34.
@1rsc, the idea of a Google or Amazon exploring T (even as an acquisition) gives me the feeling of hitting the Powerball so stop it.....but the brews would be on me!
Motley Fool, to name one notable, has put articles out there to say that T is not a growth prospect....so be it, and if any holder of T stocks knows this, is willing to accept the risk, and is enjoying the dividend either as its own “annuity” (in retirement) or simply to buy more shares to build for retirement....then let it be no one else’s business to judge. I am a T stock keeper and fit most of the categories.
Those far from retirement are looking for a quick method to make money and patience is not in their DNA. Well, I have a news flash, the market is full of unsuccessful day traders losing money daily. Many closing in to the final days have experienced at least four tough recessions, held their ground and dollar cost avg’d their way to a comfortable retirement....and yes, even with T stock as a part of their portfolio. Not every investment choice is meant to be an Apple, Amazon or a Google.
Whoever stated that T has the highest dividend of any company is pretty f---ing dumb or just ignorant.
OP Post ID: @YSj8DZB-1nga
A 6% dividend at $45/share vs. $20/share? At what margin of profit do you sell? Just asking.
I own T stock for the 6% dividend. No other major company comes close. If they cut the dividend, I will sell my shares immediately.
Depends on your age really. If your young I think t stock is good to hold unto. You reap the rewards of that compounding dividend , assuming you’re reinvesting it back into T, with the potential of growth in the future. I think T becomes a takeover target by a company like google or amazon in the future. It still has a lot of valuable assets and I think 5g and airgig will give the company a lift. If you’re an employee , it s---s but the stock itself looks cheap and oversold at these prices.
Hopefully your cost basis was lower than the market value but at any rate, when I did the same, I had a huge feeling of relief.
You don’t pull out of AT&T. AT&T pulls out of you!
My father always said never keep both your job and your investments in the same company.
The drop is inevitable. Not a sustainable company anymore, they haven’t kept up with technology.
Good. It gives me the opportunity to buy low and sell high later.
@YSj8DZB-gmf Any financial advisor worth a darn would have told you it’s not wise to have more than 5% of your retirement in one stock which is what the AT&T shares fund is
Several years ago, I started selling AT&T shares and buying the index funds. every quarter, I get rid of the matching AT&T shares. Our jobs have been at an increased risk for several years, why put your retirement fund at a higher risk too? Think Enron!
Don't care whether it did or not. Just glad I'm out. Feel free to ride the Titanic as long as you want.😊
I’m sure you decision to dump your shares really shook investor confidence! 🤣