JimVanMeerten (49.75)

AT&T for income

September 21, 2011 – Comments (0) | RELATED TICKERS: T

COMPLETE ARTICLE AND GRAPHS

An old favorite income stock AT&T (T) has been in the news lately for its attempted purchase and merger of Deutche Telekom's US operations known as T-Mobile.  There is a lot of opposition lining up against it but that "bad" press has made the recent weakness in price an even better bargain for income investors.

Barchart technical indicators:

1 - Negative technical price momentum indicators on an income stock can be a signal to acquire dividends at a bargain price

2 - 40% Barchart short term technical buy signals getting stronger showing an upward momentum

3 - Trend Spotter technical sell signal weakening

4 - Above its 20 day moving average but still below its 50 and 100 day moving averages

5 - Just 8.15% off its 1 year high

6 - Relative Strength Index 53.84% and getting stronger

7 - Barchart computes a technical support level at 28.41

8 - Recently priced at 28.94 which is below its 50 day moving average of 29.12

Summary: If you are looking of a long term conservative income holding you might want to consider AT&T (T) for an addition to your portfolio.  At today's price the 6%+ dividend is attractive and if earnings projections and increases in the P/E ratio happen investors at this price could see an annual total return of 13-15% annually over the next 5 years.

Jim Van Meerten is a Marketocracy Master