Don't Sell AT&T

May 19, 2021 8:33 AM ETAT&T Inc. (T)398 Comments
Income Generator profile picture
Income Generator
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Summary

  • News of AT&T’s decision to sell its WarnerMedia assets has rattled markets and shaken the confidence of dividend investors.
  • Over the years, what we were missing in share price appreciation, we were largely receiving through a reliably elevated dividend payout.
  • But now, in exchange for a smaller dividend payout, we will need to receive a much better chance at real appreciation in share price values.
  • Our decision is to hold AT&T - but income investors must be prepared to spend more time thinking about where to enter and exit trades.

Hand holding scissors to cut banknotes
Photo by z_wei/iStock via Getty Images

For quite a while, market insiders have made the joke that AT&T (NYSE: T) works as one of the “best bond trades” that are available in the market for income investors. Of course, these facetious comments

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The Income Machine is driven by market analysis from strategies covering more than two decades of trading experience successfully navigating through a broad variety of asset classes. Army veteran. Trading room is now open, offering complete access to the full set of investment portfolios: Try the Free Two-Week Trial available for income investors looking to lock-in the introductory rate!

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.

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