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AT&T's performance has been disappointing but I've seen this time and time again over the years. The dividends will continue at a nice amount, the stock will eventually bottom out, the selling will be exhausted, and it the stock will rebound. AT&T is my largest holding by far, 800 shares. I'll buy more if it drops again.
Without a solid total return dividends add nothing . You just take from one pocket and move it to another . If the total return is weak dividends or not your roi is weak.
Without a solid total return dividends add nothing . You just take from one pocket and move it to another . If the total return is weak dividends or not your roi is weak
Dividends put a floor under the stock if investors are convinced the dividend will hold up..... Peter Lynch
Did dividends help ge , gm , kmi ,etc with a floor ? Of course not . If the stock can’t appreciate enough to exceed the payout you just get a bigger loss in share price with each pay out .
It is no different than pulling say 4% from a portfolio . You need markets to grow enough to not only replace what was deducted out but to give you a decent roi..your total return is the whole story
Last edited by mathjak107; 12-21-2018 at 07:53 AM..
That is wrong logic today . Did dividends help ge , gm ,etc with a floor ? Of course not . If the stock can’t appreciate enough to exceed the payout you just get a bigger loss .
GE is closer to Enron than to anything else. A big company with big power plants all over the place, assets on the books that were purchased at high valuations - which then dropped, accounting questions.
I'm not saying that GE is definitely going end up at zero but it might. Or it could triple.
GM - huge pension liabilities - bailed out by Obama at the bondholders detriment...
AT&T has very few similarities with either one. It's simply a stock that is out of favor on the street right now. That's all.
A stock trades on its own merit and performance .at the end of the day your roi is only about the total return . It is all your money compounds on.
You can’t dress up a pig with lipstick . A dividend is lipstick . If a stock is good it’s good . If it’s performance stinks a dividend does not make it better . Your total return is dividends and appreciation together . If it stinks the stocks performance stinks
A stock trades on its own merit and performance .at the end of the day your roi is only about the total return . It is all your money compounds on.
You can’t dress up a pig with lipstick . A dividend is lipstick . If a stock is good it’s good . If it’s performance stinks a dividend does not make it better . Your total return is dividends and appreciation together . If it stinks it stinks
OK we know you're an anti-dividend guy -- but tell us exactly what you don't like about AT&T the company, going forward. Yeah they probably overpaid for Direct TV, I'll give you that one, but they have wireless, they still have local phone service, they have huge corporations under contract who will never leave them for a competitor to save 10%. They have Time Warner. They have 5G coming. They are making money and trade at a 5 PE ratio currently. How much lower do you see this going?
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