Forget AT&T: Here Are 2 Better Dividend Stocks

The 7% dividend yield at telecom and media giant AT&T (NYSE: T) is eye-catching enough to attract many investors. However, it may well turn out to be structurally challenged -- its communications business is seemingly in decline, and streaming rivals are challenging its pay-TV business. That means its dividend may not prove sustainable over the long term.

On the other hand, industrial companies such as MSC Industrial (NYSE: MSM) and Caterpillar (NYSE: CAT) carry good dividend yields, and their cyclical challenges could be resolved in a year or two, leaving businesses and dividends back in growth mode -- something that might not be the case for AT&T given is structural challenges. Let's take a look at both.

It's not going to be a pretty fiscal 2020 for the industrial supply company, and its next fiscal year won't be much better.

Source Fool.com