Earn high yields with these U.S. telecoms

Article Excerpt

These top U.S. telecommunication providers continue to update their networks. That is helping them sign up new users, which should support their high dividend yields. AT&T INC. $16 is a buy. The company (New York symbol T; Income-Growth Portfolio, Utilities sector; Shares outstanding: 7.2 billion; Market cap: $115.2 billion; Dividend yield: 6.9%; Dividend Sustainability Rating: Above Average; www.att.com) is the largest wireless (cellphone) carrier in the U.S., with 222.8 million subscribers. It also has 4.9 million traditional phone customers (in 13 states) and 15.3 million high-speed Internet users. In April 2022, AT&T merged its WarnerMedia entertainment business with Discovery Inc. to form Warner Bros. Discovery (Nasdaq symbol WBD). At that time, AT&T shareholders owned 71% of the new firm. The company also received $40.4 billion in cash as part of the deal. As a result of the spinoff, AT&T cut its annual dividend rate from $2.08 a share to $1.11. That new rate still gives you a high 6.9% yield. In the quarter ended March 31, 2023, AT&T…