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Top 10 Dow Dividend Stocks for December

Want some reliable income? Try one of these blue-chip companies

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#1: AT&T

AT&T TCurrent Dividend Yield: 5.2%
Performance So Far in 2012:

Last year, AT&T tried to leapfrog rival Verizon in the wireless market by buying out T-Mobile, but the Department of Justice refused to budge.

Roughly a year later, of course, AT&T watched all of the M&A in telecom pass it by, as T-Mobile made its own successful buyout bid for regional carrier MetroPCS (NYSE:PCS) while Japan’s Softbank swooped in for a 70% stake in Sprint … and AT&T remains America’s No. 2.

In market share, anyway. But at least where it concerns dividend investors, AT&T is the Dow’s top dog. This Dependable Dividend Stock not only has tickled income investors with a substantial 5%-plus dividend, but it also has matched the market and edged out rival Verizon in capital gains for the year-to-date.

AT&T’s story is the same as Verizon’s: It’s a big ol’ pseudo-utility with a rock-solid balance sheet and stable user base … but one with admittedly limited means of growth in a regulated industry. Its most recent earnings report showed profits and revenues that were just about flat year-over-year, and it only gained about 151,000 contract subscribers vs. 319,000 in the year-ago period.

That doesn’t mean you should avoid T shares, though. As long as you go into this venerable blue chip knowing you’re going after slow and steady income for the long haul rather than a quick run-up in shares, AT&T won’t disappoint.

Kyle Woodley is the Deputy Managing Editor of As of this writing, he did not hold a position in any of the aforementioned securities. Follow him on Twitter at @IPKyleWoodley.

Article printed from InvestorPlace Media,

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