In an ultra low interest rate environment, high dividend stocks seem like a better bet than 10-year bonds that only yield 2.4%. AT&T is and has been one of the largest telecom stocks in the world and currently yields 5.92%. The current quarterly dividend is $0.42 per share and 10 years ago it was $0.254 per share. AT&T managed to increase its quarterly dividend by more than 60% over the past decade. Even if we assume that they only increase their dividend by the rate of inflation, AT&T can still beat 10-year bonds if it doesn’t decline by more than 5% per year. If AT&T trades above $14.18 in 2020, an investor would be better off investing in AT&T stock than in ten year treasury bonds.
Free insider trading data website Insider Monkey compiled the list of 5 stocks insiders are buying with at least $5 billion in market cap and 4% dividend yield. These stocks should beat 10-year treasuries unless there are substantial declines in stock prices and significant dividend cuts
Source: Business Insider
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