High-Yield Dividend Stocks to Buy This Summer

Studies have shown that there is no single best season or month to trade stocks — take that, January Effect!

That said, there are some solid, high-yield dividend stocks swirling around in the warm summer breeze. Read on for three that should be plucked out of the air…

AT&T

Monster telecom stock AT&T (NYSE:T) isn’t exactly a monster on the stock exchange.

The company is wrestling with revenue drops in both the communications and entertainment ends of its business.

In the increasingly important entertainment segment, this is a case of short-term pain for long-term gain. AT&T has decided to prioritize profitability, making moves like increasing prices for its DirecTV and U-verse offerings and eschewing some of its promotional deals. That has alienated some customers but increased margins.

Meanwhile, AT&T is doing a good job reducing its big pile of debt. Its still very robust cash flow gives it scope to continue doing so while more than supporting that meaty dividend. Over the past year, the company’s shares have essentially traded flat, compounded by Q1 results that didn’t exceed expectations.

The future is ripe with potential. The upcoming WarnerMedia streaming service built on the company’s massive library of TV and movies (from the Time Warner acquisition) will be a compelling proposition. On the communications side, potentially strong demand for 5G services — which could command premium prices — might end up as quite the growth catalyst. So now’s a good time to take a serious look at the stock.

This is a fine, high-yield dividend stock backed by a profitable company that throws off loads of cash and has exciting opportunities in front of it. AT&T’s distribution sports a nice, rich dividend yield of 6.3%.

CenturyLink

CenturyLink (NYSE:CTL) has fallen out of favor with income investors, not least because it cut its dividend by 54% earlier this year.

Like AT&T with Time Warner, CenturyLink made a big acquisition — the heavily indebted…

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