Should You Scoop Up These 3 Stocks Yielding More Than 5% in Dividends?
The market correction has investors scrambling to find safe stocks. There aren't too many stocks out there at the moment that are avoiding losses, but there are several dividend stocks that are holding up relatively well. These stocks generate returns that include periodic cash flows to investors, even if their stock prices are down temporarily, which makes them popular.
Let's take a closer look at three of these stocks that happen to have high dividend yields right now and see if we can help potential investors determine if they are great deals or value traps.
Telecom giant AT&T (NYSE: T) cut its quarterly dividend in half last month, and it's currently yielding 5.2%. The company had become somewhat bloated and debt-laden, and it's in the midst of a strategic turnaround to reduce some of that financial leverage while focusing on its more promising business units. The divestiture of business and struggles in its business telecoms division led to a 13% decline in revenue last quarter. Even its relatively promising mobility segment is only growing 5.5% annually.
Source Fool.com
