14 Blue-Chip Dividend Stocks Yielding 4% or More
While the markets have rebounded from last year's late plunge somewhat in 2019, there's still one positive remnant from the selloff. Dozens of high-quality blue-chip stocks have been cut in price enough to lift their dividend yields above 4%.
At present, familiar names from the consumer staples sector are combining decades of steady dividend growth with near-record yields and bargain-priced valuations.
Energy stocks - which already were depressed due to weakened energy prices - were hacked even deeper. But these companies have already responded to market adversity over the past few years by shedding poorly performing assets, trimming costs, repurchasing stock and paying down debt. Some of those same companies were able to keep raising dividends, too, and now are positioned to survive in lean times and thrive as energy prices recover.
Even some international stocks' yields are ballooning thanks to Brexit fears and a slowdown in several countries' growth.
As a result, each of these 14 blue-chip dividend stocks currently off yields of 4% or better - with the highest payers delivering more than 6%.
AT&T
Market value: $224.6 billion
Dividend yield: 6.6%
Already well-known for its TV, mobile and broadband businesses that serve nearly 160 million subscribers, AT&T (T, $30.83) recently closed on an impressive portfolio of entertainment assets. Through the 2018 acquisition of Time Warner - which includes the Turner, HBO and Warner Brothers businesses - AT&T gained one of the world's largest TV and film studios and a world-class library of entertainment content.
During the final quarter of 2018, AT&T reported profits of 78 cents per share to easily beat expectations of 65 cents, and revenues of $41.7 billion beat estimates of $41.2 billion. The company also beat the mark on U.S. wireless net additions, adding 2.7 million customers versus 2.2 million expected.
Future growth will come from rolling out 5G service in additional markets and launching a new direct-to-consumer bundled entertainment package. AT&T's entertainment business began 2019 with the top-grossing movie of the holiday season (Aquaman), which has earned more than $1.1 billion worldwide.
While AT&T's sizable debt load is a concern for investors, the company plans to use 2019 free cash flow (estimated at more than $26 billion) to trim $12 billion from debt and end next year with a debt ratio reduced to just
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