We were looking through our list of dividends stocks and it looks like we could use me dividend aristocrats. Those are companies that have been paying an increasing dividend for 25+ years. We sorted the list by dividend yield and the second highest yielder is AT&T (T). We already own some AT&T (T), so we decided to look at them again.
AT&T (T) provides telecommunications and entertainment services through four segments: Business Solutions, Consumer Mobility, Entertainment Group, and International. Some of the large items you may recognize include cell phone services, broadband, internet, DSL, and U-verse.
For their dividend growth track record, they have been paying an increasing dividend for 31 years. That is a long track record. They currently have a good yield of 4.9% which will help bring our average dividend yield up.
We still believe in AT&T (T) being a great company. With their great cell phone, TV, Internet, and expansions into Dish (Satellite TV) and Mexico, we believe they will continue to stand the test of time. We expect slower dividend raises to begin with because of their goal to reduce debt. After they get their financial house in order, we assume they will increase their dividends at a faster rate. With the nice starting yield of 4.9%, this is acceptable to us.
In addition, AT&T (T) can be considered a utility company. With the services they offer, their customers keep paying a monthly bill over and over again, like electricity. Reoccurring bills are a nice stream of revenue, which should help keep earnings and dividends stable and growing.
So we bought 7 more shares of AT&T (T) for $281.60, including the commissions to help part for cell phone bills. This will add another $13.44 to our yearly dividends. Making a second purchase of AT&T (T) will be a great dividend stock to add to our list.