The Long and the Short of T?

[Boomer]

Whether it’s with individual shares, mutual funds, or ETFs, dividend investors are likely to own AT&T. (T)

Not only does T pay a nice dividend but that dividend has been increased on an annual basis for more than 30 years.

Lots of retiree portfolios hold T, mainly because of its (so far) dependable dividend.

T now has a dividend of 5.73% because the share price has been dropping lately. There are those who might see this as an opportunity to scoop up more shares. But there are also those who are getting quite uncomfortable with what is happening to T right now — and what could be a potential risk to dividend income, especially for retirees who are long on AT&T. (It’s in the financial news a lot lately.)

Thoughts?

[Daddymac]

21st Century Fox Inc. Executive Chairman Rupert Murdoch called AT&T Inc. boss Randall Stephenson twice this year to gauge the telecom CEO's interest in selling CNN should it complete its acquisition of Time Warner Inc., the cable network's parent company, according to people familiar with the conversations.

The phone calls, one in May and a second in August, came as AT&T was working through the regulatory approvals needed to close its $85-billion takeover of Time Warner, a deal that is still pending.

Mr. Murdoch didn't offer to buy CNN, two people familiar with the calls say. Other people familiar with the calls said Mr. Murdoch did mention buying CNN and Mr. Stephenson conveyed both times that he wasn't interested in selling the cable news channel. The calls were first reported by Reuters.

CNN has been a sensitive topic for AT&T as the telecom company seeks Justice Department approval to buy Time Warner, which also owns HBO and the Warner Bros. film studios. President Donald Trump has often criticized the channel's coverage of him. The White House has said it hasn't pressured Justice Department antitrust enforcers in any way regarding the purchase.

Mr. Stephenson said at a business conference Thursday that he had no interest in selling CNN and no reason to suspect the Trump administration was meddling with the department's work on the deal.

Mr. Stephenson said the news channel had attracted interest from others outside the department. "I have been called and asked if I would sell CNN by numerous people not in the Department of Justice," he said. "There have been a lot of people [who] express interest in CNN."

The Justice Department has raised the prospect with AT&T that it divest one of two assets to get clearance for the merger, people familiar with the negotiations have said: CNN parent Turner, which also includes cable networks such as TBS and TNT; or AT&T's DirecTV satellite TV unit.

[Daddymac]

November 10, 2017 08:00 AM ET (BZ Newswire) -- News

Citigroup maintains AT&T (NYSE:T) with a Buy and raises the Price Target from $52.00 to $54.00

[l2ridehd]

I have bought and sold T many many times. I have a standing buy order at $32 and a standing sell at $42 currently. It has made me lots of money over the years. I do adjust the buy and sell price from time to time. And all while it pays me well above a 5% dividend. I also usually shut it down at X dividend time depending on what is going on with it. I have owned as many as 20,000 shares and as few as a thousand. I usually keep a 1000 shares so I get all the company propaganda. Right now am down to 2000 shares, but it is getting close to my buy price so who knows.

It's a solid company that the price moves with the news. But the dividend is great while your holding it.

[justjim]

Great stock and great company.

[capecoralbill]

Not sure on my advice, but i held GE some years ago, and all the pundants, talk said the dividend was safe. They cut the dividend shortly after that, so go figure.

[Boomer]

Not sure on my advice, but i held GE some years ago, and all the pundants, talk said the dividend was safe. They cut the dividend shortly after that, so go figure.

Yes. I remember when that happened. Pfizer had a dividend cut a while back, too. It can happen, even to the giants.

I need to look up the time of year when AT&T announces a dividend increase. Companies, like T, that are on the list of Dividend Aristocrats-- those with a history of increasing the dividend for at least 25 years running -- are reluctant to give up that status, even if the increase is a tiny one.

I do not think a dividend cut would happen at this point -- although I have no idea what I am talking about. :) Though the P/E is in the mid-teens, the payout ratio (94.3% now) has been bothering me for a while. I would like to see more room in that number.

I do not like to have my cage rattled and T is requiring too much of my attention right now. I will wait (mostly) while I watch. I do not want to witness a hamstringing of my sweet giant.


PS: Btw, GE's dividend payout ratio is 111% right now.

[Kenswing]

Not sure on my advice, but i held GE some years ago, and all the pundants, talk said the dividend was safe. They cut the dividend shortly after that, so go figure.I couldn't help myself. I gobbled up whole bunch of GE when it hit $20. Time will tell if that was a wise decision..

[dewilson58]

Yes. I remember when that happened. Pfizer had a dividend cut a while back, too. It can happen, even to the giants.

I need to look up the time of year when AT&T announces a dividend increase. Companies, like T, that are on the list of Dividend Aristocrats-- those with a history of increasing the dividend for at least 25 years running -- are reluctant to give up that status, even if the increase is a tiny one.

I do not think a dividend cut would happen at this point -- although I have no idea what I am talking about. :) Though the P/E is in the mid-teens, the payout ratio (94.3% now) has been bothering me for a while. I would like to see more room in that number.

I do not like to have my cage rattled and T is requiring too much of my attention right now. I will wait (mostly) while I watch. I do not want to witness a hamstringing of my sweet giant.


PS: Btw, GE's dividend payout ratio is 111% right now.

GE..............Might be cut on Monday.

I enjoy T dividends........also like Southern Company and Duke.

[manaboutown]

Back in 1970 I went to work for Eastman Kodak in Rochester, NY. At that time they made film for a nickel or a dime per roll and sold a roll of film for over a buck. I left at the end of 1972 as I discovered I suffered from SAD. Sold all my EK stock before the whole market tanked to buy a house where I had moved. Nothing like dumb luck! Technology changes and when it does....

Now I do own some T and VZ but one never knows.

[capecoralbill]

wow, i just looked at ge's 10 year chart, scary. GE last cut its dividend during the financial crisis of 2009. G.E. shares touched as low as $5.73, on March, 2009 after announcing the 68 % dividend cut. They later rebounded a bit, ending trading down 4.56 percent, or 32 cents, to $6.69.

[l2ridehd]

So it might be a good time to buy GE. The most money I ever made on a stock was buying Bank of America below $6 a share. Buy what others don't want for the best growth.

[billethkid]

With Immelt finally gone from GE there is hope for the stock to get back to it's performance levels of the years before Immelt:

General Electric (GE) - 55 Year Stock Split History | MacroTrends (http://www.macrotrends.net/stocks/charts/GE/stock-splits/genl-electric-stock-split-history)

Sigh!!

Not sure how/why he was left in command as long as he was.

[manaboutown]

So it might be a good time to buy GE. The most money I ever made on a stock was buying Bank of America below $6 a share. Buy what others don't want for the best growth.

I wish I had done that as I already owned some BAC but I bought some self storage REITs dirt cheap instead. They really took off when the financial crisis abated.

I did buy some LVS @ 2.6 when it tanked. Still hold it. Nice dividends now and trading in the 60's. I love sin stocks.

[Chi-Town]

Nuveen NAD........5+% yield tax free.

NAD - Nuveen Quality Municipal Income Fund | Nuveen (https://www.nuveen.com/cef/Product/Overview.aspx?FundCode=NAD)

Bought this in '99. Been happy through the years.

Sent from my SM-T310 using Tapatalk

[Boomer]

Not sure on my advice, but i held GE some years ago, and all the pundants, talk said the dividend was safe. They cut the dividend shortly after that, so go figure.


The relentless maw of the 24-hour news cycle must be filled so it gives everybody a place. The blog-o-sphere is full of it, from Seeking Alpha to Forbes.



GE..............Might be cut on Monday.

- - - - - - -

You were right.


With Immelt finally gone from GE there is hope for the stock to get back to it's performance levels of the years before Immelt:

General Electric (GE) - 55 Year Stock Split History | MacroTrends (http://www.macrotrends.net/stocks/charts/GE/stock-splits/genl-electric-stock-split-history)

Sigh!!

Not sure how/why he was left in command as long as he was.



I remember that 3 for one split. But then hubris kicked in and they got way deep into trying to be in the world of finance. Unrestrained greed.

- - - - - - - - -

I like calm waters and could never forgive a dividend cut. That is why I am watching the interference with T.

Boring Boomer

[dewilson58]

GE.............the first day of their recovery.

:thumbup:

[Boomer]

GE.............the first day of their recovery.

:thumbup:


I admire your optimism.

Or maybe your comment is tongue-in-cheek.

I don’t know.

I truly hope GE really does recover — fast. I know people who work there.

I will watch and hope for the best.

[Boomer]

:cus:I am aggravated enough by the interference with AT&T and then tonight, while watching the Nightly Business Report, I learned something else to be concerned about.

Investors should be aware that the tax plan in Congress right now has a requirement that investors selling stocks must sell the longest held shares first—taking away the individual’s right to choose which shares to sell. Of course, if passed, this would typically result in a bigger capital gains tax hit to investors who like to take a little profit every now and then.

As those who like to do their own investing know, managing tax hits is a main ingredient in managing income. If this gets through, it is really going to hurt small investors. :cus:

[Boomer]

Today's news:

The DOJ has sued.

Are T investors screwed?