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.