08-15-2014, 01:18 PM
(08-15-2014, 12:20 PM)Turvok Wrote: I've been thinking of selling my AT&T shares. The dividend is great, but the DGR is below that of inflation. I think you can hold it for about a year or so until inflation picks back up, but I would look into something with higher than a 2.5% DGR. I've been looking at DE as well as GRMN lately.
I bought AT&T recently as I think growth is about to pick up. I think the DirectTV acquisition will help and could lead to higher dividend growth after the deal is completed.
Even with worst case 5% initial yield and 2% dividend growth, with compounding of reinvested dividends you get a 10% yield on cost in 10 years.