AT (NYSE: T) is a good dividend stock thanks to its high yield. At 5.9%, it's more than four times the S 500 average of 1.4%. For income investors, it can make an ideal investment for the long haul.

But there's even more reason to invest in AT the potential upside. Shares are up more than 30% in the past 12 months, but it is still a sharply discounted stock. Here are three reasons it could still rise in the weeks and months ahead.

Many analysts expect that the Federal Reserve will start to cut interest rates later this year, potentially as early as September. If that happens, it could trigger some extra bullishness for high-yielding stocks like AT If rates come down, that means investors earn less of a return with bonds and other investments, making dividend stocks more attractive by comparison.

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Source Fool.com