When analyzing a dividend stock, pretty much every piece of advice will tell you to avoid stocks paying higher than a 5% or 6% dividend. This is because the market has dropped the stock's share price significantly due to poor business outlook, which typically requires a dividend cut. So a red flag goes up when investors see AT&T's (T -1.51%) juicy 7.6% dividend yield. But is AT&T's dividend cause for concern? Or are investors safe to invest in the stock? Let's take a look.
When the Federal Reserve decides to reduce interest rates, there will likely be a renewed interest in high dividend-yielding stocks like AT&T, and the stock could see a boost when that happens. However, it's unknown when that will occur so investors will need to be patient. Fortunately, AT&T pays investors a handsome 7.6% dividend yield that is quite safe and can likely be increased as investors wait for this catalyst.
Source: Motley Fool
Related Articles:
Is AT&T's 7.6% Dividend Safe?
Posted by D4L | Wednesday, August 23, 2023 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
These investments take advantage of the potential for growth in the share price and dividend yield. Yet, when it comes to undervalued compan...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.