Went to the bank yesterday to renew some CD's. For a two year CD the rate was 1/2 of one percent. Took the money and bought some T today at 34.80. Just collect the 5% and surely overtime it will increase in value.
Make that 0.5% times 20 = 10% NET in one year counting 5% in dividend and another 5% in stock price appreciation. By the way, you may not have to wait one full year depending on how fast it recovers within next 6 months.
Bought 1200 shares on January 2, 2013 at $35 per share. Closed today at $34.92 per share. What appreciation? T's performance has been nothing short of pathetic during the past 15 months but it at least pays a decent dividend.