Back in 2008, when the stock market was in the midst the financial crisis and the economy was on the verge of the Great Recession, Steve Bannon’s Dad decided to sell all of his AT&T shares based on a Jim Cramer interview on the Today Show…?
Why sell all of your AT&T shares when they have a dividend…? And AT&T isn’t a high flying Internet stock, it’s an old school buy and hold and collect the dividend stock.
In fact, I’m sure it’s one stock that Cramer would have said not to sell, since it has a dividend. I think AT&T has paid out a dividend for the last ten or twenty years, at least. In 2008, it was paying out around 40 cents. Cramer even has a name for some of these stocks, accidentally high yielders…but this video below, as you can see, could create even more fear about what could happen in the stock market – yes, Cramer should have said don’t sell stocks that have a dividend and don’t panic, maybe sell some if you’re afraid but not all!
Not sure if I have the math right, but if AT&T was paying out 40 cents per quarter in 2008 that’d be $1.60 per year. So $1.60 divided by the share price of AT&T in October of 2008, which was around $26, would give it dividend yield of 6.2%. That’s a yield on a stock Cramer would surely say to keep and don’t sell. That’s an accidentally high yielder.
This sad story of his Dad selling all his stock, is also the reason why Steve Bannon is against the “establishment”, despite being in an administration made up of former Goldman Sachs executives and partners dead set on removing regulations in the stock market which could very well lead to another financial crisis. Another take, and one that’s seem more right, is Steve Bannon’s Dad panicked, as many investors do when there’s a crisis – it wasn’t cable news though, it was Jim Cramer appearing on the Today Show that appears to have been the trigger for Bannon’s Dad to sell all his hard earned AT&T shares:
Steve Bannon's story about how the ruling elite ruined his dad is in fact about how cable TV news makes old white men self-destruct in panic pic.twitter.com/HEFYMjtw0H
— Tom Scocca (@tomscocca) March 15, 2017
Here’s what Jim Cramer had to say about this:
I didn't.. https://t.co/SK0vHppE4i
— Jim Cramer (@jimcramer) March 15, 2017