Gotta love a dividend aristocrat at a discount

AT&T (T), like pretty much everything else in this world, isn’t perfect. Growth isn’t exactly its strong suit these days and the payout ratio is creeping toward levels I’m not overly comfortable with as an investor.

Still, when a dividend aristocrat like T is on sale, you have to take a nibble, right?

Right.

I picked up a share for $36.41 Friday afternoon – a purchase which increased my position to seven shares with an average price of $39.47. I’ve lowered my cost-basis each of the last four times I snagged a share of the company. I’d like some capital appreciation, sure, but I certainly don’t mind lowering my cost-basis, either. T, which has an annualized dividend of $1.96 a share, sports a yield above 5%, a 67.4% payout ratio and 32 straight years of dividend growth. It’s 16.07% off its 52-week high, too, so now looks like a great time to buy.

This week was relatively quite aside from Friday’s purchase, but I did see some action early on.

I was paid a pair of dividends Monday – $0.14 from FITB and $0.34 from POR (a $0.02 raise from last quarter). The pair of payouts brought my July total up to $14.48.

I also scooped up a share of Intel (INTC) for $34.42. It was my second share of INTC – I bought my first for $35.19 back in February, so I lowered my cost basis by $0.38. The purchase increased my forward annual passive income by $1.09 so, coupled with the $1.96 I expect to earn from the aforementioned share of T, I raised my annual income by $3.05 this week.

That’s all for now. Thanks for reading.

  • Justin Michael Bellear

    What’s the lifetime div count up to?