10-20-2020, 06:18 PM
(10-20-2020, 09:45 AM)ken-do-nim Wrote: Really amazing analysis. When I actually do move into dividend producers, I'll really have to do my homework. For years I've said I'll put most of it into AT&T, but looking at the last 5 years T's price is steadily declining, though I can't quite understand it with a PE Ratio of 16.46. I hope I don't have to go as low as JNJ's yield to find a stock I really trust.We spend a lot of time here discussing dividend safety. It's a critical skill. Most of us here own some T shares. If you bought it years ago it was a bad call, no matter the high yield. I'd like to think it's a good buy at current prices, or even 30 perhaps. Time will tell. The dividend is very safe at this time. Management has made some bad acquistions and incurred excessive debt. They are paying it down rapidly, but it won't be solved in a year.
Over time, a 2% yielder with growth will almost always outperform a high yielder with near zero growth. I still put a few high yielders in the mix, and use the dividends to buy something with more potential of at least modest earnings/Rev growth.