Our Latest Stock Move — out With Apple, in With AT&T

stock purchases
Today, I made the decision to sell our remaining Apple (AAPL) stock. We sold at $455.48 per share. We had bought those shares at $440.26 per share.

Why did we sell?
In less than 1 year, we have seen the stock hit $700 per share, and drop under $400 per share. Competition is only getting stiffer for Apple and I am no longer confident that it is a great stock to own, so when the stock shop up due to a recent earnings report, I jumped at the chance to unload it.

You see, I have had my eye on another big name stock for a while now.
With a massive dividend yield of 5.08%, AT&T (T) looks like a mighty fine purchase. I can't say I plan on hanging on to this one for a super long time, but am looking forward to the next 18-24 months of growth.

Apple is a fun one to own, but it has no longer become a sure thing. I also wanted to add another dividend paying stock to our portfolio. Additionally, as a stock holder, I like AT&T as a company. Their growing U-Verse program as well as their stable cell branch of the company is attractive as a shareholder.

I don't look too much further than that into a stock purchase. As of now, this approach has worked great, so I thought I'd share today's decision with you!

Comments

  1. Do you know how to read Income Statements and Balance Sheets? One of the most useful tools I took away from an Accounting class was how to read these two statements. One of the things to look out for is how much debt they’re carrying, if debt grew from year to year to went down. Are they paying out more or less dividends? It is probably the best skill to have when play with stocks. (even thought I don’t) People say it’s a guessing game and I say you can make educated guesses. Read the news watch the statements, if you can guess where the business is going it will help determine where the stocks are going. Variables exempt of course.

    • Zack Reyes says:

      I can’t say I have ever learned how to technically read the sheets. I definitely look at a company’s cash holdings, debt to equity ration and dividends. Like you said, just reading the news can give you a good feel for a company. Also I totally agree that it is NOT a guessing game. Just make sure you read it from several different sources. We don’t have a ton invested, but so far, with just some smart decisions and a little research, just about every stock we have bought has gone up.

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