AT&T (NYSE: T) is a good dividend stock with a good growth potential for the long term investor, especially for dividend investors. Listed below are the reasons why AT&T is a good dividend stock:
- AT&T is currently paying $2.08 per share (giving a yield of 7.30%) annually.
- AT&T has generated plenty of free cash flow; thus, it has no need to to cut back on dividends going forward.
- AT&T has been offering a dividend since 1984 and increased its dividend every year.
- AT&T has low valuation, priced at 8.8 times of its future earnings.
Therefore, AT&T is a good stock to own for dividend investors.