The stock has fallen by 45% in the last five years, by 44% in the past 10 years and by 57% this century.
So what does everyone like about this company? It is clear that the dividend. Until this year, AT&T was a star when it comes to dividends, increasing payouts for more than 30 consecutive years. It also often had a large yield.
If we include the dividend in the total return for AT&T stock, the stock has fallen 18% in the past five years and upwards 16% over the past 10, and they’ve doubled since 2000.
In other words, the dividend saved AT&T’s shareholders, but that doesn’t soften the blow.
Let’s take a look at two charts — one dividend adjusted and one unadjusted — as both show notable potential areas of support nearby.
Trading AT&T Stocks
Above is the dividend adjusted look. As you can see, AT&T stock is in the $15.75 to $16 area, which has been a significant support in recent years.
Overall, this zone has supported the stock price, while the 200-month Moving Average just pops up below. That gives bulls a reasonable risk/reward setup, assuming they plan to hold for a while.
Below is the non-adjusted chart for AT&T stock, which also indicates a remarkable level.
That’s as the stock price nears its lowest level since 2008.
Overall, the $15 area was a decent support and marked the low for AT&T in the last 22 years. Investors buying today expect this to be the case again in the future.
That said, we should also realize that the company has spun a significant portion of its business with the Warner Bros Discovery assets.
Still, if we look at the charts and where support can play a role, in addition to AT&T’s whopping 7% dividend yieldbuyers may be interested.
If the stocks fail in this support zone, it could be dead money for a while.
But as long as AT&T stays above these levels, the longs could absorb dividend payments. A rally in the stock would be icing on the cake.