Why AT&T Is a Retiree's Dream Stock
Investors looking for a stable stock that returns a ton of cash to shareholders might scratch their heads if someone suggested AT&T (NYSE: T). The stock is about the same price as it was 25 years ago, and the company's recent acquisitions have left it saddled with debt.
Additionally, investors might be worried after the recently announced first-quarter dividend didn't include an increase for the first time since 2003; a new CEO has clarified the strategy for the next few years and those dividend hikes are up in the air for now. But AT&T's stock is at a historically low valuation and the business is generating enough free cash flow to pay off debt and invest in growth while sustaining its current dividend, which is yielding about 7% as of this writing. This might make the stock a no-brainer for retirees looking for a high yield with the stability of a blue chip company.
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Source Fool.com
