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JimVanMeerten (58.52)

AT&T for income



December 16, 2011 – Comments (0) | RELATED TICKERS: T


For long term defensive income investors AT&T (T) has always been a cash cow with a capital MOO!  Long term income investors might want to consider this stock on the recent market weakness.  As you can see on this graph provided by Barchart the stock has had a bit of weakness in the last 6 month:

The stock has held up well during the past year as measured by the Value Line Index of 1700 stocks

Barchart technical indicators:

  Barchart uses technical indicators form 7 days to 6 months to determine the current direction of a stock's price momentum 

  At the present time the stock's price momentum is very weak

  A weakness in the price of a solid income stock can signal a good entry or accumulation point

  Barchart technical hold signal

  Trend Spotter sell signal

  Trading below its 20 and 100 day moving averages but above its 50 day moving average

  The stock currently trades 9.92% below its 1 year high

  Barchart computes a technical support level at 28.52

  Relative Strength Index is 49.02% and currently falling

  Traded recently at 28.78 which is below its 50 day moving average of 28.89

Summary: AT&T (T) is definitely not a growth stock but income investors like the steady dividend of 5.92%.  The dividend appears to be secure and is expected to increase over the next 5 years.  I think the price to day is about a good as you will get in the near future and only bad news about the T-Mobile acquisition can drive the price down further.  It is now trading at the high range of its 14 day turtle channel as this Barchart graph shows:

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