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The More It Drops The More I Buy: AT&T

Apr. 07, 2021 8:35 AM ETAT&T Inc. (T)CMCSA, ROKU, T.PR.A, T.PR.C, TBB, TBC, TMUS, VZ1.16K Comments


  • Bears focus on the company's debt levels and TV subscription losses.
  • The company's history proves debt levels are manageable and the dividend is safe, and so is its dividend growth advantage.
  • HBO Max provides synergies seldom discussed by analysts.
  • AT&T remains one of the best SWAN Dividend Aristocrats that retirees can trust.
  • Looking for a portfolio of ideas like this one? Members of High Dividend Opportunities get exclusive access to our model portfolio. Learn More »

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AT&T: The More It Drops The More I Buy

Co-produced with Chuck Walston

AT&T (NYSE:T) is a dividend growth stock that currently yields close to 7%. There are those in the investment community

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This article was written by

Rida Morwa profile picture

Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991.

Rida Morwa leads the investing group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone. Lean More.

Analyst’s Disclosure: I am/we are long T. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Treading Softly, Beyond Saving, PendragonY, Preferred Stock Trader, and Chuck Walston all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1,158)

So, you must be buying a ton.
I wouldn’t go near T.
Jeff Swan profile picture
The more it drops, the more it looks like a falling knife. I'm holding for the dividend, but not adding anymore.
chris.strickland profile picture
Normally I like your articles and picks, but T is a dog. They're cutting the dividend biggly, I dumped all I owned when that news came out around $31, glad I did. I've since moved the cash into other better monthly dividend payers. T has never been a growth stock, with this management never will be. I was worth holding like a 6% CD, but not as a 3% one. I will never trust the current management, they have mismanaged acquisitions and hurt retirees with this big dividend cut.
31October profile picture
A 3% CD also doesn't lose 15% of its face value....
I'll hopefully break even before I turn 142 years old.
"AT&T remains one of the best SWAN Dividend Aristocrats that retirees can trust.". So many things wrong in this 1 sentence. Ok so who shot the bird?
ron2004 profile picture
How/why is AT&T a SWAN???
@Rida Morwa Is ATT is still a good buy and provides a clearer business model?
@R. Mehta The issue is not that complicated. Take his one recommendation since say January 2020. Note the stock price than and now. The answer is obvious.
SamHain31 profile picture
Everybody note that comments with data, portfolio backtests, and other evidence of HDO's many errors are being deleted, but insults and mockery are being left...
For example, this article claims that a flat 7% yield would outperform a 6% market CAGR, even though T would return less. Will this comment exist tomorrow? Any theories as to why HDO would delete evidence of bad logic but leave critical commentary?
lsuavecito profile picture

>> insults and mockery are being left...<<

Sam, that's why many linger here:-)
SamHain31 profile picture
I'm lingering here to collect evidence and get good advice and SA is all out of good advice
lsuavecito profile picture

>>and get good advice and SA is all out of good advice<<

GOOD advice is tough to come by, is a scarce commodity in the cyber halls of SA.
You would think the authors would have learned by now to not use the “The More It Drops…” formulation.
@Rida Morwa, when you said XOM's dividend was getting cut, I loaded up on XOM and when you said T's was safe, I traded it out for MO.

I'm extremely pleased with both holdings.
New spinoff has AAPl TV, Disney and Netflix by the balls now. I hope they rip them off and turn this into two Divy paying Co's
And once again HDO is wrong about picking stocks. If you want to be caught holding the bag then do what HDO recommends.
This stock stinks, i.e., you must have wrote this imbecilic article before they eviscerated the dividend. Soooooo happy I sold this dog when it was at $37 and change last year. POS stock.
I just don't understand why so many dividend investors/seekers believe that doubling down on a loser is a smart high dividend investing strategy. So you just own more shares of a declining stock with strong odds of future dividend cuts.

Some examples of recent HDO recommendations...GEO down 77% the past 2 years, WPG down 94% since December 2019 recommendation. I remember reading about investors doubling down and buying more GEO when it was $12 in March 2020 (after it had dropped from $23 in 2019). Today it trades at $6.33.

Based on these "success" stories, if I were a high dividend investor, I think it would be wise to first wait until the company turns around financially, then buy more. Buying more now could most likely just add to your losses.
bo0bo0 profile picture

"I just don't understand why so many dividend investors/seekers believe that doubling down on a loser is a smart high dividend investing strategy."

No dividend investor/seeker believes that doubling down on a loser is a smart high dividend investing strategy.
DelmarResearch profile picture
Time to back up the truck for income! What a great opportunity.
Jeff Swan profile picture
@DelmarResearch Until the dividend gets cut after the deal. Of course, there's always a chance that the deal doesn't get approved.
Alternative Investing profile picture
@DelmarResearch safe/reliable income flow.
@DelmarResearch Truck? U mean semi
Jeff Swan profile picture
Dividend cut coming! The Rida jinx strikes again!
PendragonY profile picture
@Jeff Swan

Yeah, in a year. And so too will be a bunch of shares in a new streaming company.
Jeff Swan profile picture
@PendragonY So I assume you’re buying hand over fist today?
PendragonY profile picture
@Jeff Swan

No, I am holding right now. I am waiting to see how much the panic pushes the share price down.
Gary Gambino profile picture
Buying more yet? It’s on its way to becoming a high yielder again even with the “resized” post-spinoff dividend.
@Rida Morwa wondering whether your thesis has changed with recent news? Don’t care about whether or not the prediction was right just care about your opinion as we never have perfect information when making recommendations
Oil Can profile picture
Well I guess this analysis is busted.
Another dumb move by this company, but then they do continue to own CNN, so I'm not surprised...
Dividend to be cut between 46-56%

Hate to say we told you so, but it’s the same story with all these in debted companies. Reaching for yield seems to always end like this...
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