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BT (LSE: BT) shares were top of my watchlist a year ago, and I came close to buying. I thought they looked cheap, with a forward price-to-earnings (P/E) ratio of just 6.75 and a forecast yield of 7.36%.
That’s exactly the profile of the FTSE 100 stocks I’ve been buying, but I hesitated.
The shares had just jumped 20%, and I convinced myself the moment had passed. It felt like the early stage of a recovery, which is typically the most lucrative part, and I didn’t want to chase it.
I noted the long-term underperformance, the costly pension liabilities and BT’s £20bn debt pile. UBS had even warned that the dividend could be cut in half. So I stepped back, again.
Full-year jump
Shortly after, full-year 2023 results landed. I expected a sell-off after a 31% fall in profits, but the market had other ideas. The shares climbed another 10% in a day.
Chief executive…
