The AT&T Dividend Shouldn’t Be Chased

Most of the long-term wealth in the stock market gets made by searching for one of two things. Either the accumulation of assets selling at a discount, or the purchase of securities trading at fair prices that have unusually have earnings per share growth rates. For long periods of time, AT&T stock has tended to fall in the category of undervalued because the investor community thinks it is too big to deliver any subsequent growth. But when the dividend of AT&T goes below 5%, history has shown us that the subsequent returns are usually below expectations and confirm the conclusion that the stock shouldn’t be bought when it is overvalued because it can’t … Read the rest of this article!