An Oldie but Goodie for This Market

By Rick Pendergraft

When the market is behaving badly and all the Johnny-Come-Lately stocks are getting beaten down, the best thing you can do is go with a tried-and-true company. And there aren't many companies that are more tried-and-true than AT&T.

The biggest domestic telecom is an attractive play right now. The company may not be super-exciting, but with a long-term growth rate of 6.74 percent and return on equity of 12.16 percent, slow and steady will win the race.

AT&T has pulled back with the rest of the market, but the stock found support near 22, just as it did in '05. The best part about this pullback is that the stock is now yielding 5.6 percent and the dividend looks safe. Though many companies are cutting their dividends, it looks like T will hold steady.

With safety being a major concern right now, AT&T is as safe as they come. Sometimes it is better to bet on the tortoise than it is to bet on the hare.