MarketWatch

Three dividend stocks rated ‘A’ for safety

In a world of low interest rates, dividend stocks can be a blessing for investors who need income. For example, on May 18, shares of AT&T Inc. (T) fell 6% after the company announced a change of strategy — a plan to reverse years of expensive acquisitions by spining off WarnerMedia in a deal with Discovery Inc. (DISCA) Investors weren’t happy with AT&T’s plan to “resize” its dividend, with the yield on the shares expected to decline to roughly 4% from 7% before the deal was announced. The spin-off hasn’t been completed yet, and the dividend hasn’t been cut, but AT&T’s shares have fallen 13% (excluding dividends) since May 17, while the S&P 500 Index (SPX) has risen 7%.

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