When analyzing a dividend stock, pretty much every piece of advice will tell you to avoid stocks paying higher than a 5% or 6% dividend. This is because the market has dropped the stock's share price significantly due to poor business outlook, which typically requires a dividend cut.

So a red flag goes up when investors see AT's (NYSE: T) juicy 7.6% dividend yield. But is AT's dividend cause for concern? Or are investors safe to invest in the stock? Let's take a look.

AT, the largest mobile carrier in the U.S., also has other ventures like AT fiber. However, none of these areas can be considered "growth" industries, as almost everyone in the U.S. can access these products. As a result, any revenue increase is due to capturing market share from another competitor or increasing prices.

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Source Fool.com