It’s shopping time – here is an update on my AT&T dividends and holdings.
During the Balanced Dividends Shopping stint in February, we explored 4 considerations for selecting single-name securities, or individual holding, for our taxable portfolio:
- (1) Distribution Frequency
- (2) Account Allocation
- (3) Price
- (4) Value
At the time of that post, we emphasized our objectives to increase passive income derived from non-retirement accounts and to diversify the frequency and source of our passive income.
Not much has changed since then. Except for our progress.
Related: FTW! Is it Possible to Invest for Today AND Tomorrow?
Reminder – Summary of AT&T Purchases and Dividends Since February
In last month’s recap, we covered our purchases since February, where we shared we had originally acquired 40 shares of AT&T (T) toward the end of 2017.
In early February, we purchased an additional 25 shares, bringing us up to a position of 65 shares.
With a current dividend of 50 cents a share each quarter, we found the annual $2.00 of income per share very appealing for our respective investment objectives.
We also mentioned we intended to continue to add to our position in the weeks following. And we did.
After adding nearly $800 in annual forward passive income to our non-retirement accounts, I found myself in an overall satisfying position with our progress over the last few months.
However, here are a few things still on my mind despite the nice progress we’ve made.
(1) We’ve “Lost” Over $1,200 in AT&T
Well, not really. The market value of our position has declined by approximately $1,200 – as of close of business Friday, 18-May-2018.
And it might slightly higher or lower tomorrow. Or the day after.
While I do like seeing our overall position increase in value, it’s a mental game to not check the price of T throughout the day and every day. It will drive you insane.
Overall, this is just our unrealized gain at this time. And until we decide to sell, we won’t realize a gain or loss.
Part of this is also already offset by the $150 dividend we received in May (more to come soon).
Related: Passive Income & Portfolio
(2) Our Cost Basis in AT&T Continues to Decline
Reviewing the prior shared table above, you’ll see we purchased the bulk of our positions when T’s cost per share was a few dollars higher. This sucks!
But no one knows what the price of an asset will be on any given day. It’s impossible.
So instead of worrying that we purchased the larger portions of our current position when the price was higher, I’m now focusing on the present opportunity: acquiring additional shares at more favorable prices.
Over the last 3 months, we’ve been able to gradually add to our holding while slowly lowering our average cost per share.
Remember – it’s important to focus on what you can control – not what you can’t control.
Related: How We Got To Averaging +$1,000 a Month In Passive Income
(3) I’m Thinking Long-Term with AT&T While Acting Now
I admit. I’m an action junkie. I like to take action and put things to work.
Whether it’s getting cash to a savings account for a short-term goal, paying a bill, or purchasing additional shares of an investment, I like to see action.
But that doesn’t mean I don’t consider the long-term potential implications of my actions today. One area we’ve attempted to improve on is our deployment of newly acquired capital.
We do have a long-term plan, and we follow it as much as possible. But if an opportunity presents itself or the plan is not working effectively, I need to remind myself to not follow the plan like an automated idiot.
I used to be so uptight with following schedules, sticking to hard allocation percentages, and automating the hell out of everything that I sometimes didn’t think clearly.
It’s important to take a moment to reflect and slow down every once in a while.
Related: Post-March Madness: 5 (Plus) Ways To Find Balance
New News – Today’s AT&T Dividends Purchase!
Despite considering a few individual names to add to our taxable account, I ended up purchasing an additional 100 shares of T today.
For a number of the reasons mentioned above, I felt it was a good buy based on our investment objectives. Additionally, the price of the second individual security I’ve been eyeballing isn’t exactly at the entry price I’m hoping to get.
This brings us to a total of 500 shares in T, bringing our forward dividend income to $1000 a year, or $250 a quarter.
As Robinhood doesn’t currently offer DRIPs, I’ll be interested to see how we’re feeling when we do receive $250 in August.
AT&T Dividends – Wrapping It Up
I’m satisfied with our current position in T right now. We’ll continue to monitor going forward. Overall, I do intend to hold onto our shares of T for quite a long time.
Beyond today’s purchase, I’m also trying to continue to stick with a consistent writing schedule as much as possible (roughly once a week).
To offer readers additional value, I’m attempting to increase collaboration with many of the great people in our various communities. A part of this is the new Balanced Dividends Blogroll spotlight series.
Be sure to check out our recent posts!
Thanks for reading and for your continued support.
Readers, do you have any recent updates? What areas have you been focusing on? Is there any particular topic you’re interested in seeing more or less?
Post-Specific Disclaimer: We’re currently long AT&T (T) as of this writing.
Related:
Orangetheory Fitness: It’s All About That Base (Pace)!
Orangetheory Fitness: How to Win (Your Personal) Dri-Tri
(Money) Muscles Checkpoint: Six Week Spending/Saving Status
2018 Goals Overview: What Do You Want To Do This Year?
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what is the % of T among your individual holdings? are they diversified? i sold some ingredion and paypal shares and bought a preferred etf (spff) and ohi (reit) a couple of months ago. about 8k total i think. i’ve been keeping an eye on bud, mmm, and has but will wait on buying any. best of luck.
Hey Freddie – at the moment, T is our only individual security paying a dividend. We hold less than $1k in another individual name, but T is like 98% of our individual holdings. But this is a small portion of our overall portfolio. More to come on this soon.
I also enjoy me some Bud! Interesting move into your preferred holdings as well. – Mike
Hi Mike, T has had a rough go from a stock price perspective over recent months. I own and plan to continue to hold, but not add more for now. I will deploy the nice dividend stream elsewhere in our investments. It will be interesting to see how the Time Warner acquisition pans out. Tom
Hi Tom – good point on Time Warner. I was a bit concerned the other week pending the announcement, but – as you said – we’ll see how it turns out. I was uncertain about increasing our position by 100 shares, but I’m content with the current position. – Mike
Wow Mike that is some serious capital you deployed right there. I love me some T and have been adding to it in the past months. Current price is very enticing especially since I, like you, initiated when it was almost $41.
Thanks! Yes, we’ve allocated quite a bit of our available capital toward T (and also Fundrise) over the last several months.
On your entry point, it only creates additional considerations for buying opportunities! It can hurt a bit to considering unrealized losses but T will hopefully continue to pay a nice dividend. – Mike
Hey Mike. Good post on one of my first-ever stock purchases. I initially bought in 2012 and added to my position over the years, and on price alone I’m underwater by about $800. But I’ve continued to add DRIP shares the whole time, and I will continue to do so. Right now it’s paying me about $800 per year in dividends, which I’m happy to take and reinvest. The dividends are safe for the foreseeable future, and ATT has sufficient cash flow to pay the dividend while still paying off the debt from its recent acquisitions. Long-term those investments could significantly increase the value of this stock.
Hey FIREman – thanks for your comments.
It is nice that ATT has a good cash flow for the moment. The acquisitions could end up absorbing much of that available cash, but I think the long-term will be good. Like you, I’m happy to collect current dividends and wait to see what happens. – Mike
Holy smoke! That’s quite a position you built there with T. Like you I’m convinced T will do fine more sooner than later. With TWX they will become a powerhouse and they’ve diversified their revenue base. Good luck with this position!
Hi Dividend Compounder – thanks for your comment!
I believe T will take some time to benefit from the merger, but I’m happy to continue to receive a nice dividend each quarter. As you mention on your site, “accumulating wealth, slowly but surely” – I believe T will enable us to do that over the long-term from an income perspective.
Good luck with your current position as well. Thanks again for reading. – Mike