High dividend yields are attractive to investors. Who doesn't want a large stream of steady income? However, there's more to it than that, as there is an underlying asset to the dividend that could lose (or gain) value.

When searching for high-yielding stocks, one that immediately comes to the top of the list is AT (NYSE: T). The telecom giant underwent some business transformation over the past few years, but one thing has remained the same: a high dividend payout. So is AT stock a good one to buy for its dividend, or are there better options available? Let's find out.

AT has become a more focused business over the past few years. It spun out DirecTV to a private equity fund and WarnerMedia to Discovery, creating the new company Warner Bros. Discovery. Because those business segments were gone, AT didn't have the same level of profits, so it was forced to cut its dividend payment. However, the stock price adjusted, too, leaving the stock's generous 7.1% yield.

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Source Fool.com