AT&T (t) the stock’s underperformance was well documented even before the 2022 bear market.
The stock has fallen by 45% in the past five years, by 44% in the past 10 years and by 57% this century.
So what does everyone like about this company? The dividend is clear. 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.
That streak came to an end when the company was recently unable to raise its dividend and then spun off its media assets into what became Warner Bros Discovery. (WBD) .
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, with the 200-month moving average looming just below it. 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.
But looking at the charts and where support might play a role, in addition to AT&T having a whopping 7% dividend yield, buyers might 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 lungs can absorb dividend payments. A rally in the stock would be icing on the cake.