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AT&T yielding 8%

Posted on 10/13/21 at 6:54 am
Posted by SlidellCajun
Slidell la
Member since May 2019
15899 posts
Posted on 10/13/21 at 6:54 am
ATT stock has been getting slammed lately so the dividend yield is now at 8%. There really isn’t any news other than some earning revisions.

Verizon, for comparison sake is also getting slammed and is yielding “only” 5%. I like Verizon but not sure there is any more upside with them than ATT. The payout ratio is better with Verizon though so maybe a safer dividend but neither really has any hint of a dividend cut despite large debt loads.

Of the 2, it’s hard to overlook that 8% yield.
Posted by FLObserver
Jacksonville
Member since Nov 2005
15754 posts
Posted on 10/13/21 at 7:08 am to
Yeah but the Div will be cut in only a few more months. This maybe a reason for the selloff. AT&T has always been a buy thanks to their Div. With that being lowered soon not a lot to get excited about short-term.
This post was edited on 10/13/21 at 7:36 am
Posted by slackster
Houston
Member since Mar 2009
91300 posts
Posted on 10/13/21 at 10:17 am to
Do. Not. Chase. Yield. Ever.

Glad you brought this here before buying. The highest estimates are around a 40% dividend cut, but some are suggesting it could be up to 50%. That means the yield at today’s prices is closer to 4.95% to as low as 4.15%.
Posted by Hayekian serf
GA
Member since Dec 2020
3997 posts
Posted on 10/13/21 at 10:18 am to
I prefer VZ hands down
Posted by KillTheGophers
Member since Jan 2016
6743 posts
Posted on 10/13/21 at 10:27 am to
When I was young, I would chase yield and I always got burned.

Posted by mikeytig
NE of Tiger Stadium
Member since Nov 2007
7728 posts
Posted on 10/13/21 at 10:35 am to
Dont chase high dividend paying stocks?
Posted by SlidellCajun
Slidell la
Member since May 2019
15899 posts
Posted on 10/13/21 at 10:54 am to
quote:

Dont chase high dividend paying stocks?




I have some where I was chasing yield without proper understanding of the underlying factors and it’s not worked.

but When I first bought ATT, it was yielding 5.5% and I’ve bought more over the years at higher yields. That has been over a 15 year period. It’s paid off quite well..

Posted by SlidellCajun
Slidell la
Member since May 2019
15899 posts
Posted on 10/13/21 at 10:54 am to
quote:

Yeah but the Div will be cut in only a few more months


Thanks for this info. I hadn’t seen it but now realize the mirage.

I hope they don’t cut too much.

Verizon looking like the better play
This post was edited on 10/13/21 at 10:57 am
Posted by slackster
Houston
Member since Mar 2009
91300 posts
Posted on 10/13/21 at 11:12 am to
quote:

Dont chase high dividend paying stocks?


There’s always a reason for the high yield.

High yield ETFs have typically woefully underperformed the large cap value space, much less the overall market, in the last decade.

I’m not anti-yield, I just believe folks should take a good look before buying something with a dividend that seems abnormally high.
Posted by Triple Bogey
19th Green
Member since May 2017
6552 posts
Posted on 10/13/21 at 11:15 am to
quote:

When I was young, I would chase yield and I always got burned.


Same. The idea of reinvesting dividends and it just compounding year after year got me really excited. I then lost 50% of my investment once the dividend got cut. Lesson learned
Posted by MSTiger33
Member since Oct 2007
21431 posts
Posted on 10/13/21 at 12:43 pm to
Check out EFC
Posted by PUB
New Orleans
Member since Sep 2017
20638 posts
Posted on 10/13/21 at 5:31 pm to
VZ makes a profit while T has been running negative earnings. And this stock split is leading to a dividend reduction up to 50%,if not higher.
Posted by LSUcam7
FL
Member since Sep 2016
8784 posts
Posted on 10/13/21 at 8:18 pm to
Until AT&T turns into a Seadrill scenario I’m lot taking a second mortgage on the house to lever the F up.
Posted by Marcus Aurelius
LA
Member since Oct 2020
3900 posts
Posted on 10/13/21 at 9:37 pm to
How much longer will ATT be paying that?
Posted by AMS
Member since Apr 2016
6534 posts
Posted on 10/13/21 at 11:34 pm to
go back and check CTL stock, not quite the same but may be comparable due to it having a crazy dividend with a price drop and massive dividend cut. after a bit price rebounded some... may be worth a buy some month(s) or so after their div cut.
Posted by audioaxes1
Member since Jul 2019
233 posts
Posted on 10/14/21 at 2:09 am to
I made out decently with ATT dividends plus premiums off of covered calls but so many other plays in the same timespan would have been so much bigger
Posted by 22jctiger22
Member since Apr 2013
497 posts
Posted on 10/14/21 at 7:57 am to
quote:

VZ makes a profit while T has been running negative earnings. And this stock split is leading to a dividend reduction up to 50%,if not higher.


Say what? This is completely false.
Posted by Thecoz
Member since Dec 2018
3828 posts
Posted on 10/14/21 at 11:18 pm to
Considered T for dividend a few times…
They are are getting a lot of press about their debt and dividend cuts…lots of baggage..I decided to stay away
Posted by SlidellCajun
Slidell la
Member since May 2019
15899 posts
Posted on 10/28/21 at 2:30 pm to
quote:

How much longer will ATT be paying that?


Well they announced that they’ll be paying it to share holders as of nov 1 and earnings are looking real good.

The dividend cut talk is starting to wane.

I still like it
Posted by USMCguy121
Northshore
Member since Aug 2021
6332 posts
Posted on 10/31/21 at 7:30 pm to
If you just want a passive yield, buy USDC and park it on the Celsius wallet app. 8.88% interest. I have a large sum on it and have no problem pulling my cash out when I need to.
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