AT&T's Dividend Blows Away the 4% Bond Yields: Should You Buy?
Some investors turned away from stocks recently because of the rising returns in the fixed-income market. A 2-year Treasury note now pays 4.3% (as of Oct. 12), a level that could induce some investors to choose bonds instead of stocks.
However, high-yield dividend stocks such as AT&T (NYSE: T) may still hold some appeal. Due to falling stock prices, AT&T's dividend returns significantly exceed that level. The question for income investors is whether they should take the guaranteed return of the bond or buy AT&T.
AT&T may not seem particularly risky at first glance. It is one of only three nationwide 5G providers in the U.S. Since communication is a necessity, this lends itself to a stable business that can support a dividend, as it has for decades.
Source Fool.com
