Thread regarding AT&T layoffs

I'm the guy that owns AT&T for the dividend, that prompted the response of the "cash/money market" alternative. While it is clear he misspoke, it's also clear he was talking about an investment that was diversified. He should be corrected, but there's no need to rake him over the coals.

I bought AT&T at $30. At the time I wrote on this board that AT&T at $30 was a buy, thinking it was underpriced. At the same time, I dumped off my VZ at $59 and change, thinking it was fairly priced.

I noticed after it went ex-dividend, the price dropped a buck. At $32, I think it's a hold. I wouldn't buy at $32 because we're talking about yield. But, looking at the weather outside and seeing partly sunny, I like $30 as a buy point. If I see partly cloudy, I might change my mind.

I have the weekend to decide whether to dump AT&T before the earnings call. There's been several quarters of bad news - on the other hand, the assumption of bad news might already be priced in.

I hold this stuff in a Roth, where long-term, short-term considerations isn't an issue. The one thing to make sure of in this account is, to make sure I'm buying stock with "settled" funds. Using margin will destroy the tax advantage.

Once more for the people with poor reading and comprehension skills: I DO NOT DO NOT DO NOT OWN SWOBX. FORGET ABOUT IT.

• For the last time+++++++ the fund I own is “Charles Schwab SMP MF Income With Growth." It also says "Third Party" so it's most likely something Schwab is re-selling. The fund is composed of 11% Cash, MMF's [Sweep], 64% Bond Funds, and 24% Equity Funds. Exact wording off the June statement.

Don't believe me? Call Schwab Monday and ask for yourself if you are too stupid to read what I wrote without getting it confused with SWOBX.

And while reading the June statement, I ran across the nugget responsible for the high return. I plan to investigate this over the weekend and make a call to my broker about it Monday.

Hey Schwab Boy, think your broker owes you a conversation. The fund gets exactly the percentages you claim, but a Cash or MM fund it ain’t. And please don’t ask me to call your broker too, I’m just passin’ through!

Like an earlier poster mentioned, if the market takes a tumble, the mix in your fund won’t protect your gains. Good luck

@1bjo, you keep deflecting, "don’t believe me, call Schwab." You’re a broken record Grasshopper. You gave us the ticker, right? You told us that you were getting 7.5% from a "cash and money market fund" Right? Is the ticker SWOBX a mutual fund or a cash/money market fund? You said it was a cash and money market.

You wanted me to call CS and ask them, I did the next best thing. I took the ticker, you gave, SWOBX, put it through the websites of Fidelity, TRowePrice and MarketWatch and for good measure Charles Schwab website.....and guess what? Yup, they all call it Schwab Balanced Fund (a mutual fund)....no cash/money market account....maybe it’s time YOU call Schwab.

Great you’re making $$ on your mutual fund....but you should really understand the difference! Onward, if you’e not willing to learn, time to move on!

@1fai, no misrepresentation on my part at all. Like I said, call Schwab and ask them.

Please re-read my post. I quote " And here's a -different- CS balanced fund (THEIR words) with returns comparable to T's 6%." This does NOT mean the fund I currently hold that has 7.48% return YTD. If it's a stock fund, it's a pretty pathetic return compared to standard market indexes.

Once again, my fund is "Charles Schwab SMP MF Income With Growth." It also says "Third Party" so it's most likely something Schwab is re-selling. The fund is composed of 11% Cash, MMF's [Sweep], 64% Bond Funds, and 24% Equity Funds. Exact wording off the June statement. Very very safe, but like any investment, past performance is not indicative of future returns.

Don't believe me? Call Schwab Monday and ask for yourself.

@1vwo, i have to say that after reading your posts, looking at the Ticker SWOBX, and taking your suggestion to do a little research, that you’re not exactly standing on the high ground.

This Schwab Mutual Fund, a Balanced fund, has roughly 38% in a Schwab Aggregate Bond Index Fund, 35% in a Schwab Core Equity Fund (stocks which are vulnerable to market change, 15% Laudus Capital Growth Fund (more large cap stocks), 10% in a Schwab Small Cap Fund (more stocks)....about 60% stocks/38% Bonds and the rest in cash or govt bonds.....not exactly a cash/money market fund.

If the market tanks, you will feel it.

I believe the quote was "I have a Cash and Money Market fund" and by the ticker SWOBX (thanks for that by the way or I’d still be looking) you have a Mutual Fund, NOT CASH, NOT MONEY MARKET.....there is a huge difference and you mislead, deceived or perhaps your broker deceived you, but you misrepresented the facts but you have would have known that if you did your research,
Right? Simple...

Cash and MMF’s are still getting about 2.47 and that’s what you claimed you had.....are my eyes lyin’?

Article is correct. T was never a technology company. Any company that buys macafee anti-virus and puts it on a free open source operating system are not technologically adept no matter how many people you have with masters/phd or nano degrees.

And here's a different CS balanced fund with returns comparable to T's 6%

Ticker SWOBX

1 year - 5.03
3 year - 9.02
5 year - 7.08
10 year - 9.49

All ya gotta do is research and talk to your broker. Simple.

@107YgeGm-1xjh Growth is not the same as income.

No longer own any T in the company shares fund. Dividend is not worth the risk of the company tanking and no longer want to be losing out on shares appreciation for Randy and the John's misguided lust on Friend's...

I'll also say the CS brokers I work with are suprized at how well this fund performs. I told 'em I wanted as low risk as possible when I opened it and this is what they suggested. Whomever is running it knows what they are doing.

So @1bls, what you gotta say about that? I put up, now you shut up.

Charles Schwab SMP MF Income with Growth. The June statement says 7.48% YTD.

Not trying to advertise CS, just a satisfied customer for now. Of course, you need to do your own in depth homework before investing in anything.

@eso, that’s because it is to good to be true. There is no such thing as a "Cash and Money Market" fund, at any brokerage outfit, that peels off 7.5% and I defy @qdv to name it. Those investment vehicles are where investors run to when the market gets bearish, like the ‘07-‘09 Great Recession, and as of right now they yield approximately 2.5%, give or take.

Once upon a time, in the middle 80’s (when inflation was through the roof) you could get a CD for 14% and a 30 year Treasury for 18%. That’s when a money market may have been higher.....of course, this Ying Yang might have a mental mindset stuck in the 80’s and actually believes what they are spouting....just thought of that, oh well.

So there you are @qdv, name it or just fade away and stop wasting our time, go phish somewhere else!

"I have a "Cash and Money Market" fund at a major brokerage that is earning 7.5% so far this year and about as much last year. It's as safe an investment as you can make." -qdv

I'd love to know more about that fund. Almost seems to good to be true...........

If you are holding T stock for a 6% dividend, don't. I have a "Cash and Money Market" fund at a major brokerage that is earning 7.5% so far this year and about as much last year. It's as safe an investment as you can make. I consider holding T right now as a big risk, especially given the content of this article.

The author hit the nail on the head. T is a dead man walking. So is IBM for that matter. Two old and storied companies that can't compete against smaller and more agile companies.

Glad I'm very close to retirement.

It's all about the dividend. If AT&T can maintain it, in an environment where the Federal Reserve is cutting interest rates, dividend paying stocks are the new bonds.

I own AT&T and the reason is entirely because we have Federal Reserve manipulated markets, and when they alter the price discovery in the bond markets, it affects the price discovery in equity markets, especially dividend paying equities. This is our new "capitalism".

I'm waiting for the Fed to turn on the money printing.
https://www.cnbc.com/2019/04/30/trump-calls-on-fed-to-cut-rates-by-1percent-and-urges-more-quantitative-easing.html

Scary stuff & it's written buy someone who's seen some tech disasters, so I think they know what they're talking about.

Every product of this company is in the mature phase of the product life cycle including the just purchased content (Time-Warner) business. If senior management and the board of directors were physicians they would be charged with malpractice.

Very accurate.

Good read