"Either way, investors should be looking for catalysts and pay close attention to the financials, especially the balance sheet, to ensure the security of a dividend, especially if we're talking about yields that are north of 6%. In this piece, we'll check out a hard-hit telecom firm with a dividend yield that's starting to return above the 4.5% level again."
"Of course, such turnarounds are expected to see bumps along the way. And the odd quarterly fumble might not be taken all too well by investors, but, either way, I think a name like AT&T ( NYSE:T) is worth giving another look as it comes in again, granting income investors a second chance to buy at below $25 per share and perhaps the 5% yield might also be in the cards as selling pressure mounts into year's end."
"In case you missed it, shares of long-time telecom firm and recent comeback play AT&T have been experiencing a rolling over, so to speak, alongside several other notable plays in the telecom scene. Indeed, just like when it seemed like AT&T's fortunes had turned for good, the shares cratered by close to 17% from 52-week highs. I think the plunge is a tad excessive and may be worth braving for in"
High-yield dividend stocks that have fallen below $20 can offer outsized turnaround potential but carry significant risk if turnarounds fail or management remains unchanged. Investors should seek clear catalysts and scrutinize financials, especially the balance sheet, before chasing yields above 6%. A hard-hit telecom firm currently shows dividend yield returning above 4.5%, with shares trading below $25 and the possibility of a 5% yield if selling continues. Recent share action included a near 17% drop from 52-week highs, suggesting the decline may be overdone for patient income investors willing to tolerate bumps during a turnaround.
Read at 24/7 Wall St.
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