Dividend stocks are appealing investments for many reasons.
First, regular dividend payments are real cash that investors can spend on
anything they want. Dividends can be used to help pay for various expenses, or
investors can reinvest their dividends into more shares of stock. In turn, this
results in even more dividends, which can be used to buy even more shares of
stock over time.
In addition, dividends can boost returns during down
markets. The past 10 years have been characterized by a nearly uninterrupted
bull market. But another recession could happen at any time. Dividends help
protect portfolios when stock prices are falling.
AT&T (T) has a 6% yield, and will pay its next quarterly
dividend on November 1st, with an ex-dividend date of October 9th. AT&T’s
dividend is highly secure, as the company generates more than enough cash flow
to sustain the dividend payout. And, AT&T’s major acquisitions will pave
the way for annual dividend increases in the years ahead. AT&T is an
attractive high-yield stock for income investors.
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