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AT&T Customer Service: From the Outhouse to the Penthouse

Fundamentally, I like the numbers and have a 12-month price target of $40. I'm significantly higher than analyst's mean targets of $37.52, but I also use technical analysis as part of my targets.

Technically, the chart is ho-hum when viewed from a daily time frame. For long-term investments, I don't put nearly as much weight on the daily chart as I do on the weekly and monthly charts. Daily charts are acceptable for daytraders and swing traders, but if you want to reach out weeks or months, you have to move past the noise and emotions that short term charts encompass.

T Dividend ChartT Dividend data by YCharts

The weekly chart is quite optimistic. The fast moving averages are trending higher above the 200-period moving average, and we are within a bull trend. After adding strong fundamentals and upbeat technicals we can place the cherry on top. AT&T pays a 5% dividend yield and has a falling payout ratio as you can see in the chart above. What that means is this high-yield stock will pay you to buy it, and the dividend appears as solid as just about any other company I have looked at in months.

Investors should count on dividend increases in the future based on their current performance. The only question remaining is when to enter. Since the daily chart is trending near the 200-day moving average, I suggest entering near $35.40 or lower as a reasonably discounted entry point. At the time of publication, Weinstein had no positions in stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Robert Weinstein is an active trader focusing on the psychological importance of risk mitigation, emotion and financial behavior of market participants. Robert co-founded the investing blog StockSaints, where he writes a journal about his trading activity and experiences.

In addition to TheStreet, Robert also contributes to Real Money Pro, providing real-time trading ideas for stocks, options and futures.

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