Can Investors Trust AT&T's Juicy 7% Dividend?
Purchasing a stock that pays a dividend has a certain allure to it. It's nice to own something and get paid to own it. And because it's a stock, there's also a chance for the price to increase, further compounding the return on investment.
However, a stock can still go down, and a dividend can get cut -- something AT&T (NYSE: T) investors know all too well.
Currently, AT&T sports a high 7.4% dividend yield, which means the company will pay an estimated 7.4% of its stock price to shareholders each year. This number constantly fluctuates because it is calculated using the annual dividend payout divided by the stock price.
Source Fool.com
