AT&T Stock Forecast and Performance
With a 6% dividend yield, the company AT&T is a solid, stable company to buy, at its current price is around $30 dollars and solid revenue and relatively low debt makes it for a good stock pick, today I’ll be buying 30 shares of them.
As you can see in the above chart, the price action for AT&T has been relativity stable in the past few years, this company has had it’s ups and downs however this is in my opinion a solid investment, specially if you are looking to receive dividend payments every quarter, why do I believe this is a good buy? Well, it is very simple for me, look around, virtually every human being in the United States uses a smart phone and they have a limited options of carriers, in my personal experience AT&T provides excellent coverage nation wide at very competitive prices, their revenue continues to grows and I do not see demand for this company going down at all, if any, this company continues to grow every year and now that 5G is a possibility, earnings should go up which will push stock prices even higher.
Now, even though I am providing here a positive outlook for $T you have to always do your own research and pick your stocks based on your own opinions and your own research, I am not a professional stock picker or finance adviser, this information is just for entertainment purposes.
So, if you are a dividend investor like I am, you will find a lot of value in buying a company that has been paying dividends for many, many years. See, I invest for cash flow and I love receiving quarterly dividends no matter what the share prices are, my plan with any dividend paying company is to hold the stock for a long time until they decide to cut the dividend, from my own personal experience, receiving dividends is a great way to invest long term and collect payments as you hold on to the stock.
Also you have to remember that investing is a process where you want to always get the best prices, you are picking individual stocks and you have to get them for the best price possible, I rarely will invest large amounts of money in one single stock, what I usually do is initiate my position of a small amount of shares and then I will average down if the stock prices decline, if the stock is valuated too high I will wait for a pullback until I get the price that I want, this strategy has worked for many years for me and has given me very good return on my investment while I collect my dividend payments.
Is AT&T Stock Dividend Safe
Here is the deal, there is really no guarantee out there that a company will keep their dividend payments to investors, there is risk in every investment that you make, even if you only buy an ETF, there is always the risk of a dividend payment being cut, just take a look at Kraft Foods, they had been a stable company for a while and they just cut their dividend, so is the AT&T stock dividend safe? Well in my personal opinion, it is and the reason for that is because this company generates enough revenue to cover the dividend payments, their balance sheet is solid and their debt is not as high as other companies. Even though they are a Telecommunications company and they need to invest large amounts of capital into developing the infrastructure needed to maintain their customer base, I do not see them cutting their dividend any time soon, now once again, I am not a professional stock adviser so take the time to do your own research and invest based on your own findings.
So why does AT&T Stock keeps going down?
As you may already know, the stock prices are all based on what people think the share prices are worth, a company can be very profitable and have the best balance sheet and the stock prices could go down, for example if there are bad news about the CEO or some scandal, the stock prices could go down, through out the years, there have been other companies and competitors that come into play, also the company has made some acquisitions and other investments that the public may not like which causes the stock prices to go down, even though this is not affecting the profitability of the company, it could still cause share prices to go down, like I said, the market determines what the share prices will be and this one of the reasons why the stock could be in the decline, this is where having a strategy like averaging down could be beneficial in a case like this.
So what can you do to protect your self when a stock continues to go down? Well there are a lot of things that you can do, one of the things that I do that work pretty well is to look at the price chart and do some technical analysis, when you look at the chart you can determine what the good support and resistance points are, if stock prices are hitting or at least getting close to the all time low prices then in my opinion this is when you need to buy shares, if you look at the chart and find where the support levels are and you can buy at these prices then in my opinion you are entering your position in a good spot, this will protect you since the price decrease will be already reflected in the share prices and you will get the best price for the shares, as people say, buy low and sell high still works even in the stock market and this is a strategy that has worked for me for a long time, not only are you getting share prices at rock bottom but you are also protected a bit since in most cases the market will recover and you will get the resistance levels and you will be able to profit from the price movement and from the dividend payments as well.
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November 2019 Update
As of November 3rd of 2019 I am happy to say that $T has been one of my best performing stocks, not only have I received several dividend payments but I am up almost 30% on this position, looking back the main reason why I bought AT&T stock is simply because of the demand for their services and products, Telecoms are on high demand and they will continue to grow their revenue and pay a high dividend in the future.