From HOLD to STRONG HOLD.
Right and left, investors are rushing to buy dividend yielding stocks to the point that, today, 3% yield would seem favorable in a continuing deflationary environment we are in. As a result, the dividend yielding stocks are in high demand. We are gradually reaching a point where even the utilities such as DUK, SO, etc. have posted sizable gains in stock price driving the yield closer to the 4% mark. Unlike these utilities where there is absolutely no growth, AT&T is expected to grow earnings in high single digits with track record of increasing the dividend as they have done during the last 25 years.
Okay then, why do investors prefer to stay away from investing in this stock? Simply stated, people keep thinking this is still the AT&T of Bob Allen, Greg A. Smith, Jerry Mulyk and of course who can ever forget the dinasore called BELL LABS, IMO. No more of these incompetent managers and gone are the golden days of BELL LABS where the sky was the limit for spending without observable accomplishments. In fact, one of the major achievement of today's AT&T was to ditch BELLLABS. I command those individuals for having made such a brilliant move.
Caution- The above is just one man's own opinion and interpretation. Always do your own DD. The author holds a position in the AT&T stock.
The word "command" should read "commend." My apology for the error since I do not want to be accused of being from NJ where English is the optional language. Also, the word "Rational" should read "Rationale."