Forget AT&T: Here Are 3 Better Dividend Stocks

AT&T (NYSE: T) is a very popular stock for retirees and dividend investors. AT&T's business is diversified across mobile, media, and technology, and this diversity is highly attractive to many. In addition, shares yield about 5.5% today and trade at roughly 16.5 times earnings.

That's certainly a solid yield, but some would argue that AT&T's sprawling business had become too bloated and distracted from its main wireless business. This was the core criticism that activist investor Elliot management expressed in recent months, and AT&T management has responded by committing to a comprehensive portfolio review while pausing on any major acquisitions.

Yet after the recent run, AT&T's stock may be running out of gas. The company still faces huge competitive threats in not one, but every single one of its main businesses, as the transition from 4G to 5G communications, and the migration from linear television to over-the-top streaming remain huge question marks for the telecom behemoth. A recent downgrade from a leading telecom analyst cast further doubt on the company being able to meet its 2022 targets.

Source Fool.com