#2: Verizon (VZ)
It’s hard to beat telecom stocks when it comes to dividends, and Verizon (VZ) is no exception, with a yield of 4.2%.
True, shares are up just 16% for the year-to-date, but then, you don’t buy this telecom giant for price appreciation — you buy it for the income stream.
Meanwhile, VZ looks like a relative bargain. It actually trades at a slight discount to its own five-year average forward P/E, according to data from Thomson Reuters Stock Reports.
Perhaps best of all, after a decade of trying, Verizon finally bought out Vodafone’s (VOD) stake in the cash cow that is Verizon Wireless. That will help VZ invest in its infrastructure and services — and keep the dividend stream flowing.