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