7 Dividend Stocks to Help Through Market Volatility - 1 of 7

#1 - AT&T (NYSE:T)

AT&T (NYSE: T) - For starters, let’s take a look at AT&T. One reason for investors to consider AT&T is that they offer a 6.82% dividend yield which is more than enough to compensate investors for owning a stock that fell 21.6% in 2018. Two issues that were weighing the stock down appear to have been resolved. In June of 2018, the company completed their merger with Time-Warner. And in January, the wireless company completed the sale of several of its data centers to Brookfield Infrastructure. However, from the perspective of dividend investors, the factors related to their stock are more of what you would be concerned about for a growth stock. As a dividend stock, you have to appreciate their ability to generate an enormous free cash flow. In 2019, the company is forecast to create about $26 billion in free cash which they can use to pay for their recent acquisitions (DirecTV and Time-Warner). That kind of cash will also ensure dividend investors that the company will maintain their streak of not only paying, but raising their dividend for 35 years.  In January, analysts from Citi upgraded AT&T to a buy rating. According to the analysts’ notes: “We still see AT&T in the early innings of a multi-year transition across a number of its operating segments that may require more investment before bearing the fruits of better revenue and cash flow contributions over a longer period of time.”

About AT&T

Current Price

$23.18

Consensus Rating

Moderate Buy

Ratings Breakdown

11 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.

Consensus Price Target

$23.40 (0.9% Upside)