Well, for every 50 shares of AT&T $T, I’ll get $100 in dividends/year. I currently owning 50 shares, so I’d just double it.
Since, I’m not very good at swing trading, I’ve decided to take a small profit from my $TGT, $FOXA, and $ENDP to fund the $T buy. (The only reason I could take a profit was I was continue to buy $ENDP when it went wayyy down, then it went up with the up market. I am not very good at swing trading).
I bought $TGT for ~$55, it’s not $78 yielding $50/year, I could use the same capital to buy $T and it’d give me $100/year.
$FOXA – I originally bought it ($FOX) for $28, then, then I realized I should on the A share, so I sold it at $33 and buy $FOXA, it’s now $44 after going down to $22 … ouchy. I didn’t buy anymore as it would only give me $10/year. I could use the same amount of money and buying $T, I’d get $100. 10X the current dividend appreciation… now we’re talking.
$ENDP … I initiated a position at ~$10, then it went up to $13 or so, then crashed all the way to $5. I ended up averaging at $6. With no dividend yield, I could use the same amount of money and would add $100/year if I would buy $T or $D, or even $F. So, I’m debating. 🙂
$T — was at $40 when they bid for Timewarner. Then it crashed all the way to $31.xx. I bought 50 shares at $34. I’ve bought 50 more shares at $33. I’ll see if this investment payoff, but I’d like to see my dividend income for now as I’m a little sick of all the landlording business right now. Dividend income sounds so sweet right now. I’d do nothing and get pay left and right every month. LOL 🙂
The US justice has ruled that it’s okay for AT&T to by TimeWarner Bros… or to merge. That sent AT&T down to $32-$33. So I jumped right in.
I don’t need to analyze $T as 1 company owning the services, distribution …. urgggg… it’s gonna suck for consumer, but it’d save $T a tons of money and increase their profit, which has been lagging in the past few years and declining customer from Sprint and T-mobile aggressive in lowering the prices. I guess is they can go so low, as most customers are like Mr.W, loyal to the services, or lazy to switch. For that, I think the share price of $T will remain around $30-$40. Whether the share price go up or down wouldn’t matter too much for me, they would increase their dividend by a penny each year, that’s enough to stick around vs the 0.17% interest from my bank.
That’s what I did sold out of UVE to buy a bunch of T I think it’s a good move and will definatly pay off. I’m hoping in 2-3 years they start giving us at least 2 cents a quarter raise. Definitely a good buy right now.
This comes with a few risks
#1cost of borrowing is higher than when they initiate the bid
#2 our shares got diluted when they’re forced to give time Warner owners the shares
#3 after those guys receive the shares, they’d then sell them off quickly, so downward pressure is high
#4 its probably better to,own time Warner now, get cash and extra shares of T
I think you made a great buy. I scooped up some shares previous month!
We’re both long AT&T and have similar reasoning for buying. Hopefully the company is able to service its debt and keep paying the big dividend.