Dividend stocks are popular among investors that are seeking a steady stream of income. The continuing near-zero interest rate environment and declining Treasury yields have made the backdrop favorable for dividend investing over the past three months…
While the surging reflation trade and solid economic performance shifted investors’ focus to growth and outdoor stocks earlier this year, current market volatility has been helping dividend stocks make a strong comeback. The CBOE Volatility Index has gained 18.8% over the past month and 5% over the past five days.
Dividends paid by AT&T Inc. (T – Get Rating), Vale S.A. ADR (VALE – Get Rating), and GlaxoSmithKline plc (GSK – Get Rating) yield more than 5%, and these stocks possess stable financials and cash flows. So, we think they are worth buying now.
AT&T Inc. (T – Get Rating)
T is a provider of telecommunication, media, and technology services worldwide. The company operates through Communications, WarnerMedia, and Latin America segments.
On July 21, Grupo Werthein and T announced that Grupo Werthein would acquire T’s Vrio Corp. business unit. The CEO of AT&T Latin America expects this transaction to allow the company to further sharpen its focus on investing in connectivity for customers.
On July 20, T and JBG SMITH Properties (JBGS) agreed to deliver the first 5G Smart City at scale in National Landing, a three-neighborhood region in the center of Washington, DC. Such network infrastructure deployments should allow T to become one of the largest 5G carriers in the U.S.
T’s $2.08 annual dividend yields 7.38% at the current share price. On June 25, the company approved a $0.52 quarterly dividend, payable on August 2. T’s dividend payouts have increased at a 1.5% CAGR over the past three years. The company has a record of 37 consecutive years of dividend growth.
T’s total operating revenues increased 7.6% year-over-year to $44.05 billion in its fiscal second quarter, ended June 30. Its net income grew 22.6% from its year-ago value to $1.57 billion. The company’s EPS increased 23.5% year-over-year to $0.21.
Analysts expect T’s revenues to increase 1.5% year-over-year to $174.39 billion in the current year. In addition, T surpassed the Street’s EPS estimates in three of the trailing four quarters. Shares of T have gained 1.4% over the past five days.
T has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock also has a B grade for Growth and Stability. Among the 22 stocks in the Telecom – Domestic industry, T is ranked #1. To see additional T ratings for Value, Sentiment, Quality, and Momentum, click here.
Vale S.A. ADR (VALE – Get Rating)
VALE produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking worldwide. The company’s segments include Ferrous Minerals, Base Metals, and Coal. Vale is based in Rio de Janeiro.
On June 29, VALE announced a CAD150 million ($119.73 million) investment to extend current mining activities in Thompson, Manitoba, by 10 years. Given the emerging industrial sectors and zero-emission projects worldwide, the company’s plan to expand production should fetch significant returns over the extended period.
VALE signed an Investment Agreement with…
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