In some regards, baby boomers’ loyalty is surprising. AT&T shares are now only down 35% from their 2016 peak but are priced around half of their 1999 peak. Indeed, last month, the stock hit new 52-week lows, underscoring its persistently poor performance.
In other regards, though, it’s not terribly difficult to understand baby boomers’ continued willingness to hold on to their AT&T position. In spite of its problems (and there are plenty of them), AT&T’s dividend continues to march on. It’s grown at least a little every year for the past 36 years (qualifying it for Dividend Aristocrat status), and the payout as a portion of income is pretty generous, too.
There’s also something of an “X factor” buried in older investors’ affinity for the telecom giant. They likely grew up with the company, watching it mature into the powerhouse it is today.
AT&T offers reliable income — and nostalgia
Don’t misread the message. Apple is the No. 1 pick right now among all investors regardless of their age, according to data from Apex Clearing and brokerage firm Charles Schwab. That may be a function of its size more than it’s a function of its plausible prospects. With Apple’s market cap of $2 trillion, not only are other stocks crowded out of view, it’s also just easy to learn more about the consumer technology behemoth. Ditto for Amazon, which is the No. 2 pick for all investors these days.
