Is AT&T or Verizon Communications the Better High-Yield Dividend Stock? – The Motley Fool
When comparing AT&T and Verizon Communications as high-yield dividend stocks, investors may wonder which is the better choice. Both companies offer attractive dividend yields, but there are key differences to consider.
AT&T currently has a higher dividend yield compared to Verizon, making it an appealing option for income-focused investors. However, Verizon has a more consistent track record of dividend growth over the years.
On the other hand, AT&T has a larger debt burden, which could potentially impact its ability to sustain its dividend payments in the long run. Verizon, on the other hand, has a stronger balance sheet and more stable cash flow.
In terms of growth potential, Verizon has been investing heavily in its 5G network infrastructure, positioning itself for future growth opportunities. AT&T has also been making strides in its 5G rollout, but its focus on acquisitions has raised concerns among some investors.
Ultimately, the decision between AT&T and Verizon as a high-yield dividend stock comes down to individual investor preferences. AT&T may appeal to those seeking a higher current yield, while Verizon may be more attractive to those looking for a more stable and consistent dividend growth history. Investors should carefully consider their own investment goals and risk tolerance before making a decision.