Nobody Stops Paying Their Phone Bill

Nobody stops paying their phone bill.

That's the entire reason I like AT&T (T) here, and the chart just gave me the trigger.

Shares are coming out of a bullish bottom built at $20. The stock crossed above its 200-day moving average and it's now pressing against the top of its Bollinger Band. A break through that band accelerates the buying.

Short-term momentum turned two weeks ago when the 20-day crossed above the 50-day.

My trigger for the rally was a break above $25, and we're there.

What makes it worth owning while that plays out is what the business is underneath. AT&T is almost a utility at this point. Defensive, boring, and paying a 4% dividend while it sits there.

They also just closed a $23 billion spectrum purchase from EchoStar (ECHO), which is the kind of thing that shows up in coverage for years, not quarters.

Sure, the Treasury pays more right now. But they are clearly messing with rates, and a 4% dividend from a business nobody stops paying looks different in that environment than it did six months ago.