Almost made it out of this month with no buys. Been trying to build up cash and wait for my opportunities. This market is making it hard to resist some of the prices that are out there for quality stocks. However, I am happy to report that I was able to make a buy before month end.
I purchased 15 shares of AT&T (T). Unfortunately, this is well after the ex-dividend date, so I won’t see these new dividends for another few months. You can find more info on T below.
T Stats
Annual Dividend: $2.00
Yield: 6.02%
Years Paying/ Increasing: 33 years
Dividend increase from prior year: 1%
Payout Ratio: 57.6%
P/E Ratio: 6.76
EPS: $4.95
My position in T is mostly a yield play which adds more dividend income to my portfolio. At time of purchase, 6% yield is very substantial for a non REIT company. The dividend has been consistent even though the growth rate is not very high. I don’t run after yield but I believe it is important to have a combination of higher yield and higher growth stocks in your portfolio. This buy helps satisfy the former.
I was debating adding a new position to my portfolio next, but this opportunity was too good to pass up. Never a bad thing to add to and be able to lower your cost basis on a quality company as long as the fundamentals are intact from when you purchased it in the first place.
T has its ups and downs but I think it will pull through long term. It has been doing pretty well for me thus far. So I plan to hold and wait while collecting dividends along the way.
As shown above, T has a dividend yield of 6.02% or $2.00 annually. This will add another $30.00 to my yearly dividend income. Broken down quarterly, it will add $7.5 per quarter.
What do you think of this buy? Do you like T or do you currently own any? What other companies are on your watch list right instead? Comments are always welcome below.