HODL worthy safe Investment with Regular Income - Investing (US)
With Crypto markets staying volatile and prices heading lower, I might Buy some Crypto at these lower prices. With constant improvements in Lightning Network, we will surely see mass Adoption in 5+ years.
But, as a smart Investor I must Diversify across other asset classes, something with stable income during volatile months.
Where to Diversify? Ans: Beaten down AT&T with 6% Dividend!
With US stock market at Sky high, where do I invest? But there are some good stocks going through current market pain, due to recent interest rate hikes by Fed.
- 2nd graph below shows a 20 year chart with constant increase in Dividend payouts. Never a decrease in dividend in last 33 years actually.
- 3rd graph showing that the Dividend yield is now 6% (crossed 6% today, due to today's drop)
I am talking specifically about AT&T. Today, Court approved merger of AT&T and Time Warner. It will be a Communication Giant. With lots of synergies between them, once the overlapping departments are merged, people laid off (sad reality, but true).
Take into account Republic administration's "Business friendly" moves: first they repeal Net Neutrality and then AT&T and Time Warner are allowed to merge. Internet services are set to get costlier in US in coming years, all to the benefit of AT&T in coming years.
In short term, AT&T will have to bear Time Warner's high Debt burden (and hence the stock fell 4% today).
But in today's price, which is at almost 5 year low, we are getting Dividend Yield of above 6%!
It's like owning a Rental property, safe & long HODL for me
Meaning, 6% Interest year on year, almost guaranteed regular income.
If the Stock price goes up, that is added advantage, or if the Stock price goes down, then if we buy a little more at some possible lower price, the Dividend rate is going to be even higher.
With 6% Annual Dividends, basically, it is like a Rental Condo, generating income regularly. Only without the hassle (or sudden cost) of maintenance.