Lagging Dependable Dividend Stocks #4: AT&T (T)
Dividend Yield: 5.7%
YTD Performance: -8%
Telecom giant AT&T (T) has seen its shares slide 8% so far in 2014, and part of that slide has to do with growing competition with renegade wireless service provider T-Mobile (TMUS). AT&T just announced it was cutting its rates on its mobile data sharing plans, a move designed to thwart competition from the lower-cost data provided T-Mobile.
The price wars here might ultimately be a good thing for T stock, as the company has deep pockets they can use to run T-Mobile out of town. But in the short term, I expect to see T stock remain under pressure due to the lowered cost of plans.
In the long term, however, T stock is one of those dependable dividend stocks that is likely to keep delivering for years to come, and that means the recent selling might indeed be a great buying opportunity — specially when you’re getting a dividend yield of 5.7% to hold it.