FJ43 said:
TxAG#2011 said:
Anyone taking a stab at T for the ret accounts? Looks like its on some very long term support
Farmers the resident T expert. He probably owns half the company by now and milks the dividend.
FJ you're cracking me up! LOL!
TxAG#2011-
*Yes, T is a good play on it's dividend and is at a long term support now. The company is cash cow. Senior Leadership has tried to kill this company a few times. The company has survived some of the worst decisions a leadership team can make and still pumps out cash.
*It's like a bond, so if you're looking for TSLA daily volatility action, it's not going to happen.
You didn't ask for the below info, but I'm adding..
*I do own a pile of T. Here's exactly what I do,....prior to WBD deal, and now after WBD deal. During WBD deal I could not use my normal strategy due to constant changes in the Discovery deal, I digress.
*Hold your T through Ex-Eff date to secure your dividend payment.
*After the dividend correction period and the stock gets back to par or near par, be ready to sell a portion. (read on)
*Survey the market for a hot stock but have awareness of how the hot stock trades, the ebbs & flows. Take your cash from your T sale and buy the hot stock. You should have a good idea about how much you can make in a quick position. Set your exit profit.
*Next, sell your hot stock position and hopefully you made a healthy profit.
*Take your proceeds and re-enter T before the next quarter Ex-Eff date so you can get the next dividend. You will likely be buying more T shares, not just from your extra profit from the hot stock trade, but you'll likely reduce the original cost basis and pick up more T shares that way too. T has a tendency of being range bound in price (remember I said it was like a bond) and you'll likely end up buying (repositioning) at a price less then when you sold.
*A lot of folks will tell you that investing in T is "dead money" or "a value trap for the dividend". ---Why yes it is!--- But if you don't work this gift opportunity and just let your money sit, it's your own fault.
*It's like buying a great investment for the dividend, taking the dividend, selling the investment, doing something profitable temporarily with the money until the next dividend and when you come back to re-establish your position for that next dividend - nothing changed and you just buy a larger position. Wash, rinse and repeat.
I usually take 30% of my T and convert to trading dollars, but it all goes back to T before the next quarter. I just took a position in BG at $125ps yesterday with my T money. I'll be exiting BG with $10K gain, or more, by mid May. I will hold longer if I think the reward is there. (I don't have to be back repositioned in my T until early July) I will collect the BG dividend (0.525ps), likely. If I have to sell the BG shares quick during the dividend adjustment period, I'll be okay losing 50 cents because my per share gain will be much greater. I expect that I will re-establish my T at $19.45 or less (better).
Tomorrow, before the bell, T will announce Q1 ER. If T rally's 50 cents a share, I don't worry. That's a huge move (remember I said T acts like a bond). I'll be patient and rebuy when the excitement abates and the price comes down. The only thing that can blow up this strategy is - if T senior leadership announces a share buyback. If a buyback is announced, I'll lick some wounds. CEO Stankey said T would not consider a share buyback until 2023 or 2024. I'll take the gamble. Even if I get blown up, it's not major for me. Adjust your risk accordingly. This is how I manage a "dead money" position that I want invested in something semi-safe and solid..
It's interesting, T is like an ol' Lab sitting and waiting for you at the end of the driveway after you come back from some journey. Always there for you and you pick up where you left off until it's time to go again.
T should ride up to $22 before the year ends.
If you don't have time or the "want to" to do what I described above, T continues to be safe as a bond. A good investment and I actually think the shares will be appreciating long term versus what has happened over the last several years.
