AT&T (NYSE:T) is going to be releasing its earnings results this week, and the stock could use a good result to get out of its recent tailspin. The telecom giant is a good long-term investment given its size and strong position in the industry. But in the past month, its stock is down 6% and it has fallen into oversold territory with a Relative Strength Index (RSI) of 25.
The decline’s a bit surprising given that the S&P 500 is up 4% over the same timeframe. AT&T’s trading at just 1.1 times its book value and a forward price-to-earnings multiple of less than nine. It’s a cheap buy and its quarterly dividend payments of $0.52 mean the stock is now yielding 7.6% annually. That’s a great payout for a stock that should make for a fairly stable investment.
Trading a little more than a dollar away from its 52-week low, AT&T could be an intriguing buy heading into its upcoming earnings report. The low RSI level indicates there’s been a bit too much bearishness on the stock of late and it could be due for a rally. Oftentimes stocks gain some attention and traction before they release earnings and with no great reason for AT&T’s shares falling suddenly, it’s an attractive opportunity to lock in a high yield for a safe stock before it rebounds.
Prior to 2020, the last time the stock was trading around these levels was in 2011. With lots of growth still ahead of the company as it builds out its 5G network, this could be a steal of a deal for dividend investors.
