AT&T Inc (NYSE: T) has been decimated this year, and its stock price has dropped by more than forty percent from its all-time high. But at this point, the share price is getting close to a significant level on the chart, and the dividend yield is 7%.
Even before the market crash of 2022, it was common knowledge that AT&T Inc (T) shares had been underperforming the market.
The share price has decreased by 57% this century, 45% over the last five years, and 44% over the past ten years.
AT&T Inc Investors Not Jumping Off the Boat
So, what exactly is it that everybody enjoys about this company? The obvious answer is the dividend. AT&T Inc was a dividend superstar up until this year, having increased its payment for more than 30 years. Additionally, it frequently produced a very high yield.
This winning run ended when the firm recently attempted but was unsuccessful in increasing its payout. Subsequently, the corporation sold off its media holdings to become what is now known as Warner Bros. Discovery (WBD).
AT&T Inc’s stock price has declined 18% over the previous five years, grown 16% over the past ten years, and increased 200% since the year 2000 once dividends are taken into account.
To put it another way, AT&T Inc stockholders were spared by the dividend, but this does little to lessen the impact of the news.
AT&T Inc stock is getting closer to the $15.75 to $16 price range, which has been supported substantially over the previous few years.
This region has generally been supportive of the share price, while the 200-month moving average is poised to act as resistance below it. If buyers want to keep their positions open for some time, this creates a favorable risk-to-reward scenario.
The stock price is getting close to its lowest point since 2008.
In general, the $15 region has functioned as enough support and has represented the low point for AT&T Inc during the last 22 years. Investors who are purchasing now will expect that to continue to be the case moving ahead, and they will continue to purchase.
We also need to consider that the corporation has successfully divested a substantial chunk of its business by acquiring the Warner Bros. Discovery asset.
Nevertheless, let’s evaluate the charts and where support may come into play, in addition to the fact that AT&T Inc offers a massive 7% dividend yield. Investors may be interested in the stock.
If the shares cannot find support in this zone, the investment may be worthless for some time.
However, so long as AT&T Inc’s share price remains above these levels, long-term investors can continue to cash in on dividends. A rise in the stock price would be the icing on the cake.
Featured Image: Megapixl © Wutzko
Author Valerie Remorosa