Welcome back to the Dividend Farm, AT&T

March toward $1,000,000: Week 9 (Sept. 24-28)

OK, I tried. I tried to keep AT&T (T) out of my portfolio. Seriously. I tried to go with with growth over current income. I tried to ignore the 6% dividend yield and super-low P/E ratio. Really … I tried, but, well, this past week I caved.

Enlight282

AT&T isn’t a must-own stock for a lot of investors. The price has been stuck in neutral for some time now and the dividend is growing at a pathetic 2% or so a year. For me, though, it is a must-own stock. I’m at the very beginning of my march toward a $1,000,000 portfolio and I need some quick compounding to help me get off the ground. Dividend growers like FedEx and Lowe’s are great – and they still make up most of my portfolio – but it’ll be years before I see the magic of compounding start to really kick in with those two. AT&T, though, thanks to its 6% dividend yield, will help me add to my share count in a hurry. Now that I can DRIP with Chase, I’m super excited to see my small position grow into a bigger one each quarter.

Another reason I had to own AT&T is because I’m a customer and a consumer. I’m already sending them money each month for internet and DirectTV, so I might as well get some of that back, right? On top of that, I love the content HBO spits out year after year. Oh, and let’s not forget its a huge player in the 5G movement, which, by all accounts, is going to be a game-changer when it the technology finally catches up with the talk. AT&T is a leader in its industry and will be 20 years from now (in my humble opinion). If it can pay me $2 or so a share for the next 20 years, I’ll be happy … and I’ll have a whole heckuva lot more shares than I do now.

This Week’s Purchases: AT&T and Starbucks

So, in order to keep my portfolio diversified, avoiding any overlap whenever possible, I decided to sell my single shares of Verizon (VZ) and Comcast (CMCSA) as they do some of the same things AT&T does. With the $90 or so I got back from selling those two, plus some of a deposit I made earlier in the week, I bought six shares of the telecom for a combined $202.92 ($33.82/share).

I lost $3.17 in annual income by selling my shares of Comcast and Verizon, but gained $12 by picking up the six shares of AT&T.

I also scooped up a couple shares of Starbucks (SBUX) for $114.28 ($57.14/share) to add another $2.88 in annual dividend income. Thanks to this past week’s wheelin’ and dealing’, I’m up to $92.43 in estimated annual income.

This Week’s Dividend: Broadcom

I earned my first dividend since starting my march from scratch and switching to Chase: $1.75 from Broadcom (AVGO).

In Case You Missed It

Here are links to the last five weeks of my march in case you missed any of them:

Weeks 7-8, Week 6, Week 5, Week 4

March on!

2 Responses to “Welcome back to the Dividend Farm, AT&T

  • Your intro sounds exactly like me. I have been going the DGI route for ten years w/o T and finally I added some a couple months ago. Sometimes a safe, juicy current yield is too much to ignore. And, like you, I’m also an Internet customer of T so why get some cash back thrown my way each quarter. I don’t plan on T being a large portion of my portfolio rather some high yield support.

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