Stay Safe, Get Paid: 3 Stable Dividend Stocks to Buy

These sturdy stocks pair dividend yield with strong track records

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Stay Safe, Get Paid: 3 Stable Dividend Stocks to Buy

AT&T (T)

ATTLogo Stay Safe, Get Paid: 3 Stable Dividend Stocks to BuyMarket 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.


Article printed from InvestorPlace Media, http://investorplace.com/2014/04/stay-safe-get-paid-3-stable-dividend-stocks-buy/.

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