Top 11 Dow Dividend Stocks for September

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#1: AT&T

YTD Stock Performance: Flat
Dividend Yield: 5.3%
Sector: Telecommunications

AT&T (T) has hardly had a great year. In addition to underperforming the market dramatically, it’s also sitting on a loss while some of the other laggards in the Dow have simply posted smaller profits.

What gives? After all, the telecom giant tacked on as much as 25% during a big run last year despite regulators squashing AT&T’s $39 billion buyout of T-Mobile from Deutsche Telecom (DTEGY) … why would things be worse in 2013 than in 2012?

Well, it all boils down to top-line challenges and the problem of growth in a nearly saturated U.S. wireless market coupled with the declining landline business that AT&T was built on.

The good news for long-term shareholders, however, is that a storied history of dividends and high yield means that AT&T could be the best long-term dividend play of the bunch. It might never burn down the house with dramatic share price appreciation, but at over 5% annually in dividends and the prospect of higher payouts given the 44% increase in quarterly payouts over the last decade, AT&T is a slow-and-steady lock for any portfolio.

Jeff Reeves is the editor of and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

Article printed from InvestorPlace Media,

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