Below is a chart of AT&T from 1985 to 2021, reflecting Price Momentum data.
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Category Archives: ATT
Dividend Capture Strategy Analysis
Income investors seeking dividend may purchase and hold shares based on dividend yield. There is a strategy our team is curious about, one which involves buying shares just to capture the dividend using the shortest possible holding period.
It turns out, that the strategy is called the Dividend Capture Strategy. In short, this strategy is to purchase a dividend paying stock one day prior to the ex-dividend date and selling it on the ex-dividend date.
Critics of this strategy argue that stock prices often drop in accordance with the dividend amount that is paid. While this makes sense, we haven’t seen enough data to support this claim. That is, our team developed a model that can test this theory at the individual level. Below is an example of the Dividend Capture Strategy applied to AT&T (T).
The assumption is that we would buy AT&T one day prior to the last ex-dividend date, July 9, 2020, to capture the $0.52 in dividend. Continue reading
AT&T 10-Year Targets
Below are the valuation targets for AT&T (T) for the next 10 years. Continue reading
AT&T Achieves Target
On March 24, 2019, we posted 10-Year price targets for AT&T (T) . At the time, we had estimated 2020 undervalued and extreme undervalued targets of $27.57 and $18.20, respectively.
Since March 2019, AT&T has had an intra-day low of $26.08 on March 23, 2020.
We’d be watchful of the $18.20 target as it is still a possibility.
see also: All 10-Year Targets
Posted in ATT, Target Achieved
AT&T Yield Profile
AT&T stock has fallen -11% in 2020 yet it has outperformed the S&P 500 Index by 5%. Perhaps the largest driver for that could be the dividend yield.
As of the closing price on Friday March 13, 2020, the dividend yield for AT&T sits at 6.64%.
This leads us to do some comparative assessment of the AT&T dividend since 1984 until now. Not only will we look at the absolute yield but we will compare this to the risk-free guaranteed rate from the 10-year treasury. Continue reading
AT&T 10-Year Targets
Below are the valuation targets for AT&T (T) for the next 10 years. Continue reading
What Impact Will Apple’s iPhone be on AT&T and Verizon Stock? Technically Speaking, Not Much.
The purpose of this article is to point out the lack of impact the Apple (AAPL) iPhone will have on the share price of both AT&T and Verizon. This article makes no attempt to argue the finer points of the financial gains and loses that are made to each company in terms of revenue, profit margins, net income, etc., etc... As Dow Theorists, we believe that the change in the stock price reflects all current and foreseeable information. For this reason, when we invest, we’re primarily concerned with how all the good and bad news about a company is translated into the movement of the stock price. After all, it is the consistency of the dividend and the appreciation of the stock price that we’re seeking.
In the charts below, I have compared the price performance of AT&T (red line) and Verizon (blue line) and determined what, if any, difference in the change of price occurred before and after the introduction of Apple’s iPhone.
By some accounts, we could say that the rise in AT&T’s stock price before the iPhone was due to the anticipation of the iPhone becoming a part of the stable of products that was being offered (buy the rumor, sell the news). However, the rumor mill really started churning in late 2006, at a time when AT&T had already gained a 22% difference in stock price from the October 2005 low for both (T) and (VZ).
Historically, (T) has typically been the stock to rise and fall by a greater magnitude than (VZ). This means that as the decline from October 2007 took place, it was expected that the decline would greater in (T) and smaller in (VZ). Because the stocks have similar movement in price pattern at approximately the same time, you can do a comparison with any major peak or trough to come to the same conclusion (try it here.)
The take away from this piece should be that if you’re nervous about large moves down, then you should start researching (VZ) to see if it is the right investment for you. On the other hand, if you don’t mind wide swings down with greater potential for larger gains, as compared to Verizon, then AT&T might be the better choice. However, in terms of the impact that the iPhone might have on the prospects of either company, there isn’t much of a difference.
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