Tuesday, May 15, 2018

AT&T (T) to crash. When should I buy?

AT & T (T) is the largest telecommunications company in the United States and has a history of more than 100 years. Bad results such as lower than expected analysts, rise in long-term interest rates, merger of Sprint and T-Mobile continue, and stocks are being sold out like every day.

Nonetheless, this one can not deny "feeling oversold" as expected. Current dividend yields are wonderful 6.37%, PER is 12 times higher, which is a clear bargain, which can be said to be too attractive for investors with a high payout strategy style.

Well, readers gave us your opinions about AT & T's purchase time.

AT & T is crashing.

I also own a little, but now I can not tell whether it is time to buy more.

It is close to the bottom at the span of 5 years, but there seems to be possibility of further lowering in the future.

I think that AT & T is not a stock price but a stock which should be seen with dividend yield.

Giant telecommunications carriers like AT & T earn a huge amount of sales and profits steadily every year and make permanent shareholder returns. And the number of years of increase increases to 33 years.

However, being "stable" means that profit improvement is not expected due to good or bad profit. Naturally, we can not expect a sharp rise in stock prices. Therefore, AT & T is not an investment method to pick up with a high price as picked up by the bottom price, but investment focusing on "stable business" and "stable dividend" is good.

In addition, institutional investors and others hold a large share of the company's shares, so if funds such as rise in US long-term interest rates occur such as this time, there is also a feature that funds are easy to flow out first.

Nonetheless, looking at the Japanese market, we can say that there are no companies that have reduced their dividends for 5 to 6% for decades without reducing their risks. In that sense, a major US telecom like AT & T would be a very reliable investment destination.

In addition, even if the company is somewhat slumping due to some reason, it is likely that it will be stolen by management disqualification if it is to be reduced, so even if it is a matter of intention to increase dividends (maintaining the current status even if it is bad).

In other words, if it is the objective to enjoy a high payout of more than 6% today, if it is the current level, it can be said that it is "at any time of purchase" in a certain sense.

Even if it has held for at least 20 years, even if there is no increase in dividends, it becomes a stock acquired with zero investment cost only by dividend income, and AT & T is the stock that produces money until death.

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