Shareholders of telecom giant AT&T (NYSE:T) have seen the capital appreciation of portion of their total returns muted in the past couple of years. After rising steadily from the mid-$20s to the mid-$30s three years ago, shares have traded largely sideways since that time. However, T has proven to be a reliable dividend stock with a massive, steady yield and that has kept investors interested. Some pessimism has driven the stock down recently to its 200 DMA so on that note, I thought now would be a good time to take a look at T to see if it is more than just a bond replacement.
Overall, I like T here as a defensive play. The market is making new highs and although I'm not calling a top, I am cautious here. The market in general looks expensive and T is defensive, cheap and provides a great yield, a terrific combination in today's environment for defensive investors. I think T is probably worth something like $40 but until we see sentiment improve, it won't get there. But don't worry; that 5.4% yield is safe and rolls in each quarter without exception, a pretty nice consolation prize if you ask me.
Source: Seeking Alpha
Related Articles:
- First Quarter 2014: Top And Bottom Performing Dividend Stocks
- Don't Touch These 5 Dividend Stocks!
- 7 Dividend Stocks Headed In The Right Direction
- Who Owns The Top Dividend Stocks?
- 6 Big-Name Dividend Stocks Crushing The S&P 500
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
It’s no secret that most investors who buy high-yield stocks are looking for income. But every once in a while, yield hunters may come acros...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Dividend-paying securities are the major sources of consistent income when returns from the equity market are at risk. Why Growth-Focused Di...
-
Not all stocks that pay high dividends are too good to be true. In fact, some stocks with high yields have lots of room to grow, or they tra...
-
After an abysmal 2018, real estate investment trusts (REITs) have been on a roll this year. After pulling one of the worst performances sinc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Cheap stocks can be hard to find in a high-flying market like the current one. The S&P 500 is flirting with all-time highs following its...
-
Large-cap consumer staples companies are not known for making big moves in their share prices. But on the morning of Monday, April 22, Kimbe...
-
Big, boring AT&T (NYSE:T) recently made a splash, selling its minority stake in streaming video site Hulu. AT&T stock gained 0.7% on...
-
Finding great dividend stocks isn't always about searching out the highest dividend yield. Often, especially for retirees seeking a mixt...
0 comments
Post a Comment
Post a Comment