Better Dividend Stock: IBM vs. AT&T

Dividend stocks are an alluring investment amid an environment of rising prices, providing a hedge against inflation. Two attractive dividend-paying stocks include IBM (NYSE: IBM) and AT&T (NYSE: T).

Both are well-known companies with excellent dividend yields. IBM's yield is 4.9%, while AT&T is at 5.7% at the time of this writing.

But there's more to picking a dividend stock than yield. A key factor is whether the dividend is sustainable. For example, after the pandemic caused widespread business closures in 2020, several renowned companies, including Walt Disney, stopped paying dividends.

Source Fool.com