AT&T's outstanding dividend ($0.41) and yield (7.2%) make the telecom an attractive safe-haven investment. As recently as February 20th, Goldman Sachs upgraded much of the telecom sector, including dispatching buy ratings for both AT&T and Verizon. Goldman noted AT&T's very healthy dividend and minimal risks to it. Investors looking to hide out in equities should certainly consider AT&T for its healthy dividend alone.
Yet exposure to declining consumer spending and macro weakness plaguing most telecoms remains a significant impediment to any hopes for capital appreciation. The March 3rd break below 700 on the S&P 500 indicates technical support levels are not holding. Broad-market weakness will likely keep weighing on telecom stocks over the near term, making any foray into equities fraught with risk.
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