5 Stocks to Start a College Grad’s Retirement

An affordable small portfolio for a beginner on a budget

Dec 11, 2012, 9:08 am EDT | By Marc Bastow, InvestorPlace Assistant Editor

AT&T

AT&T T Cost: ~$34 per share

While my colleague uses Verizon (NYSE:VZ) for her Apple (NASDAQ:AAPL) iPhone, AT&T (NYSE:T) — with a price of $34 per share and a dividend yield north of 5% — looks like the better of the two telecom giants for this portfolio.

The company has plenty of cash in the vault, plus it generates more than $10 billion in free cash flow, so you won’t lose a wink over this dividend.

Yes, recent earnings were a little short of expectations, and new subscribers fell off, but considering what AT&T has weathered in the past, there’s little reason to worry. AT&T isn’t going anywhere anytime soon.