"When it comes to picking dividend stocks, you not only want a firm that can support a generous payout, but one that can grow it at a fairly predictable rate over extended periods of time. Indeed, when thinking about dividend stocks with a long-term horizon in mind, I think it makes more sense to focus on the growth profile and the shareholder-return policy than just how large the upfront yield is."
"The dividend yield is still incredibly attractive at 4.3% after shares corrected more than 11% from their late-summer highs. While it could prove difficult to grow wireless subscribers relative to its rivals, there's no discounting the efficiency gains the firm has unlocked. The turnaround has worked wonders, at least so far, and I think there's more room to the upside as the firm makes good use of AI tech to improve the service it provides."
Dividend investors should prioritize a company's ability to grow payouts predictably over time and its shareholder-return policy rather than focusing solely on current yield. Investors with higher income needs may prioritize yield, but evaluating dividends alongside company fundamentals supports perpetual income plus dividend growth and total returns. Dividend payers can still produce solid risk-adjusted total returns. AT&T has risen 84% over two years yet still offers opportunity as shares pull back. The stock yields about 4.3% after an 11% correction, benefits from efficiency gains and AI-driven service improvements, and could see margin expansion and greater cash returns, though subscriber churn remains a concern.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]