Top S&P 500 Dividend Stocks #6 – AT&T (T)
Telecommunications are another sector to look at for generous dividend stocks, even if telcos are making the headlines recently for industry consolidation.
As expected, AT&T (T) offered to buy DirecTV (TV), which will go through pending regulatory approval. The deal was necessary to fend off competition from Comcast’s (CMCSA) plan to acquire Time Warner Cable (TWC).
A gusher of free cash flow makes is easy for T to make a nearly $50 billion acquisition and pay out very high dividends. Indeed, the blue chip always makes the list of top payers in the S&P 500, and is the No. 1 among dividend stocks in the Dow Jones Industrial Average.