If an investment returned a guaranteed 6% annually, no more, no less, and compounded annually would you invest in this rather than the general market?
Assuming this is held in a tax advantaged account, after ten years of compound growth this results in a 79% increase over the initial investment.
After twenty years of compound growth this results in a 220% increase.
I do understand that no investment is guaranteed. I am simply trying to gauge the sentiment of this sub on a more stable return vs. something more volatile such as an index fund.
Edit: (I did not include the following in the original post as I didn't want a specific company attached to my question. I also realize my post would have been better worded with a "nearly guaranteed"):
With AT&T's recent price drop, the stock is at four year lows and has reached a dividend yield of 6.31%. Now, while this dividend is certainly NOT guaranteed, it is relatively safe. Yes, the debt is large. Yes the stock is stagnant. However, AT&T has raised its dividend for 34 straight years, eliminating the worries of, and sometimes beating inflation. I've been keeping an eye on this stock for nearly a year and pulled the trigger recently when the dividend became too good to ignore.
I feel that the Time Warner acquisition will be a great asset. As a data provider AND content provider, AT&T has everything it needs to start reeling in advertising revenue. Specifically with targeted advertising. If executed well, AT&T could end up on par with Google and Facebook in the advertising world.
Submitted June 22, 2018 at 06:48PM by ValenTom https://ift.tt/2tutrit
