Market Cap: $182.6 billion
Dividend Yield: 5.2%
When it comes to dull, dividend darlings, AT&T (T) stock is in many ways the prototype: high dividend yield, low volatility and a price-to-earnings (P/E) ratio that is lower now than its five-year average.
The key measurement of volatility is beta — stocks with a beta of 1 are said to move with the market. A beta of greater than 1 indicates a stock that is more volatile than the broader market, while a beta of less than 1 is less volatile than the market. As the Grande Dame of the mature telecommunications industry, T stock has a beta of only 0.29 — dramatically less volatile than the broader market.
AT&T also continues to grow its enterprise communications business, with a particular focus on providing high-end cloud and other business applications to its global customers. The company is in a dust up with consumers over plans to nix its landline telephone services in favor of wireless, but it’s only a matter of time before the company migrates customers to that less expensive infrastructure.
Besides the high dividend and low beta, there’s more to the equation than yield and stability. T stock has a P/E of only 10.5. That’s dirt-cheap considering that the average P/E for T stock over the past five years is 21.1.