Since the dividend was halved two years ago it has remained at $.278 per quarter with no increase while the share price has declined 7%. AT&T has zero credibility in the financial markets.
That is something that will never be discussed or asked about on any analyst call or presentation - they just ask snowball questions. There is a prior agreement that certain questions are out of bounds and if asked AT&T will not be available to the questioner in the future.
It’s ok buddy, it seems like a lot of people on here don’t understand how the stock market works, or what diversification means, or why T is overall a bad value proposition even in the current interest rate environment.
Just keep putting your money into LG CAP US STOCK FUND and after 30 years you’ll be golden.
I don't get it. Who holds the money when I buy the stock and who do I get the money from if I try to sell the stock and who sets the price of the stock? And where is this dividend thing coming from?
I should note, I included a 2.5% inflation in the calculation below to get the 9 year figure.
It seems like there is a significant under appreciation of how much loss of overall value of the base asset effects dividends…so I did some napkin math to illustrate.
If you started with an initial investment of $10k and bought T at $26 a share you’ll have approx 384 shares.
Once that drops to $17 your investment is now worth $6538.
Assuming the stock doesn’t recover, and you get a 7% dividend it will take you NINE YEARS to break even.
NINE YEARS
When you could have put the money into a dividend focused ETF, gotten your dividend and diversified your income stream.
BAD INVESTMENT.
Have you seen how well other dividend paying stocks have done or in general the S&P? VOO?
Those are indexes that include growth stocks. With a copper plant that needs retirement, AT&T is anything but a growth stock. It compares to bonds at best. I don't compare apples to oranges. Treasuries are "risk free" and pay 5½. Based on the yield (6.54%) and the risk, AT&T could go lower so that the yield correctly reflects the risk.
AT&T is an income stock only.
Why people don't buy Bitcoin instead of complaining about AT&T stock price is beyond me. Easy money, get rich.
People who complain about stock price... do they even own any stock or just complaining for the people that actually own stock?
I feel like people who make these comments don’t even bother to look at the rest of the market.
Have you seen how well other dividend paying stocks have done or in general the S&P? VOO?
The fact is, if you kept your money in the company stock for any length of time you’ve lost a fortune even with the dividend. Why anyone would keep ANY money in this stock is beyond understanding to me.
The opportunity cost alone is astronomical nevermind the absurd amount of time required to recoup your investment and break even.
It’s a GARBAGE investment, plain and simple.
AT&T has zero credibility in the financial markets and yet they are bought and sold everyday. It's called the stock market. You should check it out.
Dividend lose attractiveness when interest rates rise. The yield on treasuries is 5½% or so. So, in a non-growth stock, all other things staying the same, the price of the stock declines so that the yield on the dividend remains competitive with other income possibilities.
Since this is Economics 101, it isn't surprising that it isn't discussed on earning calls.
"...one of these days the street will recognize what we're doing here..."
Stank- for the last decade.
No (zero, zip, nada) accountability.
Wow. You mean “investor” calls are scripted?