#1: AT&T (T)
As we noted recently, the reigning income champ of the Dow Jones Industrial Average has a large enough payout to also land it among the highest-yielding dividend stocks in the S&P 500.
AT&T’s (T) stock hasn’t done much this year — it’s up just 5.4% — but again, you don’t own a telecom for its price performance. Valuation isn’t bad, either, as shares are essentially in line with their own five-year average on a forward earnings basis.
T’s not cheap, but neither does it look particularly expensive.
AT&T hasn’t given up on growth either. The telecom giant has made no secret of its desire to do a big deal in Europe. So don’t be surprised if at some point — maybe soon — AT&T makes a huge acquisition splash across the pond.
Until then, enjoy its 5%-plus payout.
Read More: 5 Hidden Dividend Gems to Buy
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