Royal Dutch Shell and A T & T

Q:  I was advised by Edward Jones to buy RDS.B (@$60.01x165) and it has lost ever since. How long shall I give it before bailing out? Also got T but felt that was an okay buy. I guess this business is as good as going to Las Vegas.


A: Okay, the Royal Dutch Shell Hit a high for the last year or so in Mid October and again in Mid November at or near the price you paid. the average low price for the 4 years preceding the recession was around $65 with a high of over $85 hit three times during that period. As the economy picks up again (which it really has begun to do) the need for gas and fuel oil will increase again giving the stock a boost. There is support for the stock price at $54 and I suspect that is where it will hit before it moves higher again. The good news is that it is paying a dividend of 6% and I see that as secure and will eventually move higher as well. Most analyst who follow the stock say to hold (not sell or buy) at the current level. I agree if you bought it for the dividend and for growth over a several year period.
I like AT& T at the current price and believe that with the I-Phone success and other things they have working that the price will move higher in 2010 with possible dividend increases as well. Analyst for the most part show this as a Hold as well, but I believe that it has the potential to return an easy 10% growth plus the 6% dividend that it currently pays.
For the long run these are both conservative stocks with good potential and 6% dividends. Like any stock in the short term they have down side risk on return of principle if you have to sell them at the wrong time to meet other obligations. On the other hand: One and Two year Certificates of Deposit are paying from 1 to 2.25% at this time with no possibility for growth.
So, long story short, if you can afford some pain by watching the price
fluctuate, stick with them. If the Royal Dutch Shell price goes below the $54 write me and I will look for the reason why and get back to you.
don't ever hesitate to ask me for input before or after you have invested, I am very happy to help out.