AT&T (T) The stock’s poor performance was well documented even before the 2022 bear market.
Inventory has fallen 45% over the past five years, 44% over the past 10 years and 57% this century.
So what does everyone like about this company? Obviously the gains. Until this year, AT&T was a dividend star, having raised its payouts for more than 30 consecutive years. It often had a great return, too.
That streak ended when the company recently failed to increase its dividend, then ditched its media assets in what became Warner Bros Discovery. (WBD) .
When we include the dividend in AT&T’s total stock return, the stock is down 18% over the past five years and above 16% over the past 10 years, and they’ve doubled since 2000.
In other words, the earnings saved AT&T shareholders — but that did little to cushion the blow.
Let’s look at two charts – one dividend adjusted and one unadjusted – both showing potential support areas notable nearby.
AT&T stock trading
Above is the adjusted appearance of the dividend. As you can see, AT&T stock is entering the $15.75 to $16 region, which has been a huge support for the past few years.
Overall, this area has boosted the stock price, while the 200-month moving average looms just below it. This gives the bulls a reasonable risk/reward setting, assuming they plan to hold it for a while.
below is unmodified chart For AT&T stock, which also highlights a remarkable level.
This is because the stock price is approaching its lowest level Since 2008.
Overall, the $15 area has been a decent support and has been the lowest for AT&T over the past 22 years. Investors who buy today again expect this to be the case in the future.
However, we should also recognize that the company has woven a significant portion of its business with Warner Bros Discovery assets.
However, when we consider the charts and where support can play, along with the fact that AT&T is carrying a whopping 7% return, buyers might be interested.
If stocks fail in this support zone, they may be dead money for a while.
But as long as AT&T is above these levels, long positions can absorb dividend payments. A rally in stocks will be just a cherry on top.