The most frequent return of an individual stock on a decade buy and hold basis is -100%:
Do Stocks Outperform Treasury Bills?
https://papers.ssrn.com/sol3/papers.cfm?abstr
Nobody knows what will happen to AT&T stock price. Anything is possible in the future, up to and including -100%. Its 6.74% dividend is just phantom income. It's like moving your own money around since the price of the stock drops by the amount of the dividend. Whether AT&T paid a dividend or not should have no bearing on this decision.
Selling all of AT&T and building a TIPS ladder would net grandma a positive real return likely for the rest of her life. Or she could effectively create her own pension: at her age, the payout for a single premium annuity would be quite high. Either of those options are infinitely less risky than continuing to hold AT&T. The reduction in risk is gigantic. I don't think there's a word that covers it: enormous, immense?![:shock:]( "Shocked")
![:shock:]( "Shocked")
![:shock:]( "Shocked")
Do Stocks Outperform Treasury Bills?
https://papers.ssrn.com/sol3/papers.cfm?abstr
Nobody knows what will happen to AT&T stock price. Anything is possible in the future, up to and including -100%. Its 6.74% dividend is just phantom income. It's like moving your own money around since the price of the stock drops by the amount of the dividend. Whether AT&T paid a dividend or not should have no bearing on this decision.
Selling all of AT&T and building a TIPS ladder would net grandma a positive real return likely for the rest of her life. Or she could effectively create her own pension: at her age, the payout for a single premium annuity would be quite high. Either of those options are infinitely less risky than continuing to hold AT&T. The reduction in risk is gigantic. I don't think there's a word that covers it: enormous, immense?
Statistics: Posted by TimeIsYourFriend — Tue Jan 16, 2024 6:20 am — Replies 69 — Views 6448