Read almost any review of the new $1,999 iPhone Duo (that’s the base price). It’s just as good as, if not better than, the mini iPad, reviewers say. That opens the question of whether people will buy the Duo at the higher price.

The Duo will likely be bundled with three-year subscriptions from AT&T (NYSE: T), Verizon (NYSE: VZ), and T-Mobile. Verizon charges $33.33 for the iPhone 17 Pro Max. But that includes a three-year subscription to Verizon’s cellular network. The Duo will be sold the same way. The monthly price will probably be closer to $60, given the Duo’s retail price. Spread over 36 months, the deal may be a bargain for those desperate to own one.

The Duo has a 7.6-inch screen when open. The iPad mini is 8.3 inches measured as a rectangle. Cellular models with high storage capacity can push the mini’s price as high as $899. That means the Duo is more than twice as expensive.

Apple (NASDAQ: AAPL), of course, is selling the Duo as a product light-years ahead of anything else it has launched. “The largest iPhone display ever. Foldable, posable, standable. Featuring unique iOS experiences for ultimate versatility,” Apple said. Apple released the first iPad mini in 2012. Although it has been updated since then, in “Apple years” it is really old.

The Duo has two advantages over other products, even the new iPhone 18 Pro ($1,199 base price). It is, by Apple’s estimation, the largest iPhone advance since the first one was launched in 2007. And when Apple releases new products, people usually rush to buy them. Consumers cannot help themselves.

If the Duo takes some mini sales away, it may not be a problem. In the most recent quarter, iPhone revenue was $54.3 billion out of $109.4 billion. iPad revenue was $6.2 billion, and the mini is only part of that revenue.

Apple investors worry that, at some point, the company will launch an iPhone that won’t trigger an avalanche of buyers. Apple’s new iPhone lineup makes that less likely. So, a sacrifice of iPad sales may barely matter.

The post iPhone Duo Threatens iPad Sales appeared first on 24/7 Wall St..

Wells Fargo’s Steven Cahall used a CNBC segment on September 8 to reframe SpaceX’s (NASDAQ:SPCX) wireless push. He argues that satellite-plus-spectrum architecture needs less ground infrastructure than a traditional fourth carrier, so the pain falls on incumbent telcos while tower REITs and cable operators quietly collect rent on whatever pieces SpaceX still has to lease.

Cahall told CNBC: “Telco just facing another competitor, a three player market going to a much smaller fourth player. That’s still a net negative for sure.”

The FCC just cleared SpaceX to absorb 65 MHz of EchoStar’s U.S. spectrum, and Starlink subscribers doubled year over year to 12.0 million as of Q2 2026. That makes the question urgent for anyone holding AT&T (NYSE:T), Verizon (NYSE:VZ), T-Mobile (NASDAQ:TMUS), American Tower (NYSE:AMT), Crown Castle (NYSE:CCI), SBA Communications (NASDAQ:SBAC), Charter Communications (NASDAQ:CHTR) or Comcast (NASDAQ:CMCSA).

What Cahall Said About the Fourth-Carrier Debate

Cahall broke from the standard fourth-carrier framing. He said, “We don’t think it’s because the economics of adding a fourth player to the U.S. wireless market is so compelling. It’s that there are ulterior long term technology motives.”

Those motives sit in plain view. SpaceX’s Q2 connectivity revenue reached $4.29 billion, up 66% year over year.

The EchoStar (NASDAQ:ECHO) transfer gives SpaceX a spectrum foundation it could not have assembled in time at auction. Management plans to integrate the 65 MHz “later next year” and build terrestrial hardware alongside the constellation.

Damage to carriers shows up first in pricing and margin pressure, with wholesale subscriber loss a slower, secondary risk. That matches what Verizon CEO Dan Schulman is telling investors.

Schulman said Verizon is “purposely shifting our mix towards durable recurring service revenues and away from low margin, highly promotional activity.” Carriers do that when they expect pricing to tighten.

Why the Satellite Architecture Changes the Math

Cahall put the mechanics simply: “They don’t need nearly the same amount of spectrum, the same amount of tower and signal projection. They have a big and growing satellite constellation.”

Spectrum is expensive because supply is fixed and FCC auctions clear for tens of billions of dollars. An MVNO, or mobile virtual network operator, rents capacity on somebody else’s network rather than buying spectrum and towers of its own, and Wi-Fi offload dumps phone traffic onto fixed broadband so cellular capacity stays free.

SpaceX itself described a network of “little femtocells” and rooftop Starlink dishes handling terrestrial handoffs. That is capital-light compared to macro-tower densification.

The thesis has a real hole. If SpaceX routes around U.S. towers entirely with its own rooftop equipment, the tower leasing bump never lands.

Crown Castle, asked directly on its Q2 call, would say only that its sites offer “space, power, backhaul” and would welcome satellite operators as tenants. No signed agreement exists yet.

Who Collects the Checks If He’s Right

Cahall gave the shopping list: “There would require towers. It would require a Wi-Fi offload MVNO with cable. So those could be two of the potential winners from a sector perspective.”

Tower REITs get paid regardless of which carrier wins the customer. American Tower yields about 3.93% with FY26 AFFO guided to $11.00 to $11.17 per share.

Crown Castle is the purer bet post-fiber divestiture, yielding around 5.5%, though AT&T contributes 28% of site rental revenue with a $774 million renewal cycle in 2028. SBA is the international grower, with international site leasing up 30.5% in Q2.

On the cable side, Charter’s Spectrum Mobile added 406,000 lines with mobile service revenue up 18.9% year over year to $1.095 billion. Comcast crossed 10 million wireless lines and offloads roughly 90% of traffic onto Wi-Fi.

The carriers face the opposite trend. Verizon’s fixed wireless net additions fell 30.6% year over year, the first visible mark of satellite broadband encroachment.

Is SPCX Stock a Buy?

Q2 revenue was $7.81 billion, with $3.54 billion of adjusted EBITDA and a $93.5 billion cash position. The stock trades at roughly 85 times trailing sales.

Among incumbents, T-Mobile is most exposed because its Direct-to-Cell partnership loses differentiation once SpaceX controls its own spectrum. TMUS shares are down 23.18% over the past year.

AT&T’s satellite-as-corner-case posture looks defensible, and CEO John Stankey argued the company can “get 98% of the traffic” without a wholesale satellite partner. Verizon’s 29.99% year-to-date rally already prices in the fiber pivot.

My read: infrastructure owners look like the cleaner exposure to this thesis, and Crown Castle offers the most direct tower exposure at a yield the carriers cannot match. SPCX carries the growth optionality for those comfortable with a triple-digit sales multiple, while CCI leans income-oriented at a materially lower valuation.

The post Wells Fargo Analyst: SpaceX Wireless Will Crush Carriers While Tower REITs “Quietly” Profit appeared first on 24/7 Wall St..

AT&T (NYSE:T) said Tuesday it is the first major U.S. telecom to bundle Amazon Leo satellite broadband into a managed offer with its fiber and 5G, delivered on one bill through AT&T terminals for enterprise and public-sector customers. The deal makes AT&T the anchor telecom customer for Amazon‘s (NASDAQ:AMZN) low-earth-orbit constellation, escalating the fight against Starlink for carrier partnerships.

What the Deal Actually Covers

Amazon Leo is not broadly live, with no price and no launch date disclosed; AT&T said a phased rollout comes first, positioned as backup and rural coverage rather than direct satellite-to-phone service. Amazon CEO Andy Jassy told investors in July that “Amazon Leo has close to 400 satellites in orbit, enough to begin initial satellite internet service this year” and cited more than 20 partners extending the network globally. For AT&T, satellite plugs the “2%” of rural traffic CEO John Stankey has said fiber and 5G cannot economically reach.

Market Reaction and Profit Angle

AT&T traded near $25.32, down 1.11% intraday but up 6.43% over the past month. Amazon slipped 1.9% to $252.09, while SpaceX is privately held, but Starlink still owns the constellation lead with 12.0 million subscribers.

The angle: Amazon is buying distribution through AT&T’s 2.5 million business accounts instead of building its own enterprise sales force. Watch for competitive response from SpaceX on carrier pricing, and for AT&T’s Oct. 21 Q3 2026 earnings to gauge whether the Amazon Leo tie-in shows up in enterprise bookings. Stankey speaks at the Goldman Sachs Communacopia conference today, the likely next catalyst.

The post AT&T Becomes Amazon’s First Major Satellite Broadband Telecom Customer appeared first on 24/7 Wall St..

Shares of Verizon (NYSE:VZ) have quietly become one of the year’s most interesting large-cap turnaround stories. The stock has climbed 29.5% year to date and sits within striking distance of its 52-week high.

Even so, our proprietary model still sees room to run. Our 24/7 Wall St. price target for Verizon is $56.60, implying 11.6% additional upside from the current $50.78 quote. The model rates this a buy with high confidence.

A Turnaround That Is Actually Working

Verizon’s Q2 2026 report, delivered on July 24, 2026, marked its sixth consecutive earnings beat. Adjusted EPS came in at $1.30 versus a $1.27 consensus, on revenue of $34.25 billion.

Adjusted EBITDA margin expanded to 40.1% from 37.1%, postpaid phone net adds swung to 184,000 from a loss of 9,000 a year earlier, and free cash flow jumped 27.12% to $6.426 billion.

Management raised FY26 adjusted EPS guidance to $4.99 to $5.04 and lifted the buyback target to $4.5 billion. CEO Dan Schulman called it “a structural inflection point across our entire business.”

Why Bulls See a Breakout Above $60

The bull case is grounded in three levers. First, fiber. Verizon expects to exceed 32 million fiber passings by year-end, with a medium-term goal of 40 to 50 million. Fiber-broadband connections already grew 43.3% YoY to 10.9 million.

Second, AI infrastructure. Schulman flagged discussions with hyperscalers around dark fiber, lit fiber, and 5G assets that could unlock “multi billions in revenues.” Carriers are only one slice of that buildout, and we profiled seven other companies powering, cooling, and connecting AI data centers in a free report here.

Third, churn. Postpaid phone churn improved to 0.92%, and every basis point compounds. If the AI-revenue narrative materializes, our bull-case path lands at $63.82.

What Could Go Wrong

Verizon carries $136.5 billion in unsecured debt and net leverage rose to 2.5x from 2.2x post-Frontier. GAAP net income fell 21.07% on $1.8 billion in special items, wireless retail postpaid ARPA slipped 1.4% to $168.35, and FWA net adds dropped 30.6%.

Bulls would counter that the special items are non-recurring and adjusted EBITDA still grew 7.2%. In a bear scenario, our model floor is $49.49.

How Verizon Stacks Up Against AT&T and T-Mobile

AT&T (NYSE:T) is the closest strategic analog. Its Q2 2026 adjusted EPS of $0.65 beat by 10.71%, with fiber reaching 38.6 million locations and postpaid phone net adds of 432,000.

AT&T’s $179 billion market cap trades at a modest discount to Verizon’s $210.98 billion, but AT&T is guiding to $45 billion+ in shareholder returns through 2028, roughly matching Verizon’s return profile on a smaller base.

T-Mobile US (NASDAQ:TMUS) is the growth benchmark. Q2 revenue rose 7.85% to $22.79 billion, with Core Adjusted EBITDA margin at 50.2%. Postpaid ARPA of $152.91 and a market cap of $202.7 billion imply investors pay a premium for growth.

That premium is exactly why Verizon’s yield-and-turnaround setup at a lower implied multiple makes the 24/7 Wall St. price target look reasonable rather than aggressive.

Verizon Price Prediction 2026-2030

The model’s verdict: Buy, with a 24/7 Wall St. price target of $56.60 and 90% confidence. Margin expansion, six straight beats, and a $2.83 forward dividend that funds patience.

The bull thesis strengthens if Verizon delivers Q3 service revenue growth near the guided 3% and continues repaying Frontier debt. The thesis weakens if leverage climbs above 2.7x or postpaid churn ticks back above 1%.

These projections assume Verizon executes on its fiber build-out, extracts Frontier synergies, and captures early AI-infrastructure revenue. Meaningful upside or downside would come from either a hyperscaler-scale AI network deal or a resurgence in promotional wireless competition.

The post Verizon Stock Is Near a 52-Week High. Here’s Why I’m Still Bullish. appeared first on 24/7 Wall St..

The 2026 telecom leaderboard flipped this year, and the margin is the story. Verizon Communications (NYSE:VZ), long treated as the group’s laggard, has become the year’s clear winner, while the name that spent years as the growth story sits at the bottom.

Verizon stock was up 29% year to date (YTD) through Friday’s close to $50.14, its strongest annual run in years. Meanwhile, AT&T (NYSE:T) stock had climbed 7% to $25.68, a modest gain. T-Mobile (NASDAQ:TMUS) stock was down 9% to $181.52, the group’s lone decliner.

To provide a read on the telecom sector and telecom-adjacent assets, the Communication Services Select Sector SPDR ETF (NYSE ARCA:XLC) is down 5% in 2026 so far. For the full-market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) was up 13% year to date. Only Verizon stock beat the broad tape in 2026, which frames the year as a reordering inside the sector.

Verizon’s Turnaround Finally Shows Up

Verizon stock’s rally reflects a real cost and subscriber turnaround under CEO Dan Schulman, layered on top of its wireline expansion. In Q2 2026, Verizon reported adjusted EPS of $1.30, ahead of the $1.27 consensus and its sixth straight beat. Its postpaid phone net additions reached 184,000, a swing from a year-ago loss of 9,000.

Moreover, Verizon raised its full-year adjusted EPS guidance to $4.99 to $5.04 and expanded its buyback plan to up to $4.5 billion. The company’s Frontier Communications acquisition, closed in January, pushed fiber broadband connections to 10.9 million, up 43.3% year over year (YoY). Schulman stated the results provide “clear, compelling evidence that this transformation is driving a structural inflection point across our entire business.”

Verizon’s adjusted EBITDA margin expanded to 40.1% from 37.1% a year ago, an unusually clean margin story for a legacy carrier. Its quarterly dividend also rose to $0.7075 per share, extending a long streak of annual increases.

AT&T’s Fiber Build Delivers a Steady Gain

AT&T’s advance is smaller and more incremental. The company’s Q2 2026 adjusted EPS of $0.65 beat the $0.5871 consensus by 10.7%, its fifth consecutive beat. The carrier added 432,000 postpaid phone subscribers and 646,000 internet subscribers, with fiber locations reaching 38.6 million.

AT&T accelerated its 2026 share buybacks to approximately $10 billion, up from a prior $8 billion plan, and reiterated full-year adjusted EPS guidance of $2.25 to $2.35. CEO John Stankey called AT&T stock’s valuation “very suppressed” on the July call, signaling a bias toward heavier repurchases. The carrier generated $4.67 billion in free cash flow during the quarter, with convergence and fiber execution driving the improvement.

T-Mobile Gives Back Its Growth Premium

T-Mobile’s operating results tell a different story than its stock chart. Its Q2 2026 revenue rose 7.9% to $22.79 billion, the highest growth rate of the three carriers, and Core Adjusted EBITDA climbed 12% to $9.54 billion. The carrier also raised its 2026 stockholder return authorization to $18.2 billion and lifted its full-year adjusted free cash flow guidance to $18.4 billion to $18.8 billion.

However, T-Mobile stock slipped as its subscriber growth advantage narrowed and competition intensified. Reuters reported this week that activist investor Elliott is urging Deutsche Telekom to drop a proposed merger with T-Mobile, adding fresh noise to the shareholder story. CEO Srini Gopalan stated, “We’re just getting started,” pointing to network quality and premium plans as growth drivers into 2027.

What to Watch Next

Q3 2026 reports could show whether Verizon can extend its subscriber momentum, AT&T can convert its fiber build into stronger free cash flow, and T-Mobile can defend premium plans against sharper competition. AT&T reports on October 21, with Verizon and T-Mobile typically following in the same window.

For investors sizing their positions in the group, the year’s lesson is that dividend yield and fiber execution have mattered more than 5G branding this year. Verizon and AT&T pair rising cash returns with visible operating leverage, and T-Mobile’s growth premium is being priced out of its shares even as its fundamentals hold. Traders may want to watch for signs the subscriber gap keeps closing before adding to their T-Mobile exposure.

A cautious approach makes sense across the sector. Position sizing should reflect that Verizon stock has already run hard, AT&T still has room if buybacks accelerate, and T-Mobile’s operating story remains intact even as its shareholder sentiment sours.

The post Which Telecom Stock Has Dominated in 2026: AT&T, Verizon, or T-Mobile? (It’s Not Even Close) appeared first on 24/7 Wall St..

You have $930,000 and one question: Does an insurance company writing a lifetime check produce more monthly income than a dividend portfolio you control? Most of the confusion comes from comparing two numbers that do not measure the same thing.

Payout Rate Versus Yield: A Critical Distinction

A single premium immediate annuity quote is expressed as a payout rate, which blends interest with a scheduled return of your own principal. On a $930,000 contract for a 65-year-old, a prevailing 7.3% payout rate produces roughly $5,650 a month for life, but the insurer keeps the principal when you die.

A dividend portfolio works differently because the capital stays invested. That same $930,000 parked across high-yield stocks generates about $5,370 a month while preserving the underlying shares for your estate.

Dividend Lineup: 40% DUK, 30% PDI, 30% T

These three holdings span a wide risk range, and calling any of them “annuity-safe” would be misleading.

Duke Energy (NYSE:DUK) is the most defensible name. The regulated utility yields 3.5% at a recent price of $120 and just raised the quarterly dividend to $1.085 per share, payable September 16, 2026. Management reaffirmed 2026 adjusted EPS guidance of $6.55 to $6.80 and a 5% to 7% long-term EPS growth target through 2030. Rate cases and heavy capital spending are real risks, but the dividend has a long record of steady annual increases.

AT&T (NYSE:T) yields 4.3% at roughly $26. Readers need to know this: AT&T cut the quarterly dividend from $0.52 to $0.2775 per share in 2022 and has held it flat ever since. Free cash flow guidance of $18 billion or more in 2026 supports the current payout, but a telecom that already cut once is no substitute for a contractual lifetime payment.

PIMCO Dynamic Income Fund (NYSE:PDI) carries the most risk here. The leveraged multi-sector closed-end bond fund has paid a monthly $0.2205 distribution, largely unchanged since 2020, while shares fell 11% over the past year to $15. A flat distribution against a falling price is a pattern worth examining: check the fund’s distribution composition for return of capital before assuming the payout is all investment income. Closed-end funds also trade at premiums or discounts to net asset value. PDI has historically traded at a premium, and leverage magnifies both income and losses while making the fund highly rate-sensitive.

Annuity Side of the Ledger

Tradeoffs to weigh: payments are fixed and lose purchasing power to inflation across a 25- or 30-year retirement, the decision is irreversible, and you take on insurer credit risk backstopped only by your state guaranty association up to a coverage limit that varies by state. Riders such as period certain, joint life, or an inflation adjustment all reduce the monthly check.

Which Number Wins, and Which Decision Wins

On the pure monthly check comparison, the annuity edges ahead by delivering roughly $5,650 every month compared to $5,370 from the dividend lineup. The annuity wins the monthly income race because it actively spends down your principal.

The dividend portfolio produces slightly less cash each month, but leaves all $930,000 in underlying shares fully intact and available to your heirs. We walked through building that kind of paycheck-style income schedule from ordinary savings in a free guide here.

Three Actions Before You Commit

1. Get three real SPIA quotes at your exact age and state, with and without an inflation rider, so you can see how much monthly income the rider actually costs.
2. Pull PDI’s most recent Section 19 notice to see how much of the distribution is investment income versus return of capital, and check the fund’s current premium or discount to NAV before buying.
3. Compare AT&T’s post-cut $0.2775 quarterly dividend against Duke’s rising $1.085 to decide which behavior you actually want in a lifetime-income holding.

The post Dividends vs. Annuity: Which Turns $930,000 Into More Monthly Income for Life? appeared first on 24/7 Wall St..

Rivian’s finance chief is on her way out. Rivian (NASDAQ:RIVN) said on August 27, 2026, that CFO Claire McDonough will step down October 30, 2026, after almost six years, relocating to the East Coast for her new role. Derek Mulvey, a VP of Finance who joined Rivian in 2021 from J.P. Morgan, is expected to serve as interim CFO. The market reaction has been muted: shares are down 1.7% since the session before the announcement, closing at $16.06 on August 31.

Why the Timing Matters More Than the Exit

McDonough is leaving for a bigger job. GE Vernova (NYSE:GEV) named her its incoming CFO on August 27, 2026, which reads as a talent draw. She led Rivian’s $13.7 billion November 2021 IPO and built the capital stack now funding the R2 launch. That stack is substantial: roughly $5.3 billion in cash and short-term investments, a $4.5 billion Department of Energy loan for the Georgia plant, and over $14 billion in total available liquidity and targeted future capital. Q2 revenue reached $1.66 billion, up 27% year over year, with 2026 delivery guidance lifted to 65,000 to 70,000 vehicles. Losing a finance chief one quarter before the R2 production line ramps to two shifts is the key risk investors should scrutinize.

How Investors Reacted to Other CFO Transitions

AT&T (NYSE:T) said on June 16, 2026, that Jennifer Biry will become CFO in 2027, with Pascal Desroches retiring. Biry was named deputy CFO in the interim. Shares are up 12.6% since the session before the announcement.

Caterpillar (NYSE:CAT) announced on April 8, 2026, that Kyle Epley, a nearly 30-year company veteran, was elected CFO, with Andrew Bonfield retiring after eight years. Shares are up 10.5% since the session before the announcement.

Pfizer (NYSE:PFE) announced its transition on June 18, 2026. Dave Denton left in August 2026 and was subsequently named Nike’s next CFO. Albert Bourla said, “With Cecile’s leadership, I’m confident we are in very good hands.” Shares are up 11.72% since the session before the announcement.

What Separates Rivian From the Rest

AT&T, Caterpillar, and Pfizer each identified a permanent successor the day they disclosed the change. Rivian named an interim and has an executive search underway considering both internal and external candidates. That open search is the variable. With R2 already in customers’ hands and a Q4 second-shift production ramp defining Rivian’s year-end output, the permanent CFO hire is the announcement worth waiting for. The balance sheet buys time; the CFO search sets the tone.

The post CFO Turnover at AT&T, Caterpillar, and Pfizer Sparked Rallies. Here’s Why Rivian’s Didn’t. appeared first on 24/7 Wall St..

Investors reaching for telecom-style income through the Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) often discover a mismatch between the name and the portfolio. XLC sits inside the S&P 500’s communication services sector, and the label suggests dividend-paying phone companies. The portfolio tells a different story. XLC is dominated by mega-cap tech and media, with Meta at 19.9% and two Alphabet share classes together accounting for another roughly 23% of net assets. If you bought XLC for reliable telecom yield, you own something closer to a growth-and-advertising fund. There is a cleaner way to get the exposure you actually wanted.

Why XLC Disappoints Income Seekers

XLC holds legacy telecom names in modest sleeves: AT&T at 4.09%, Verizon at 4.14%, Comcast at 4.70%, and T-Mobile at 4.15%. The rest is Meta, Alphabet, Netflix, Electronic Arts, Take-Two, Disney, Warner Bros. Discovery, and media names. Those companies pay little or no dividend, which is why the fund’s distributable income is thin. It also explains XLC’s price action: shares are down 3.46% year to date as the ad-driven mega-caps have wobbled, while the telecom sleeve inside the fund has quietly done the heavy lifting.

For an investor who wants current yield, direct exposure to fiber and wireless convergence, and specific capital returns, the swap is straightforward: holding the three telecom-adjacent components directly isolates the yield without the tech ballast.

AT&T: Cash Flow Now Funding a Buyback Surge

AT&T (NYSE:T) trades at $26.01 with a 4.36% dividend yield, roughly five times what XLC’s underlying portfolio kicks off. The payout looks well covered. Q2 2026 free cash flow reached $4.7 billion, and management reiterated $18 billion-plus in full-year free cash flow.

The capital return pace stands out. CFO Pascal Desroches said “Together, our planned share repurchases and expected dividend payments will total approximately $18 billion this year, which is essentially 100% of our outlook for free cash flow.” The buyback was pulled forward to approximately $10 billion in 2026, up from a prior $8 billion target. At a trailing P/E of 8, every dollar of repurchase removes shares cheaply. That is the mechanism XLC cannot deliver: AT&T shareholders capture 100% of the buyback impact, while XLC holders see it diluted by a 4% weight.

Verizon: The Yield Anchor With Fiber Growth Attached

Verizon Communications (NYSE:VZ) offers the highest headline yield of the three at 5.65%, backed by 20 consecutive years of dividend increases. Shares are up 29.19% year to date, and the story behind that move matters. The Frontier deal closed January 20, 2026, and Verizon expects more than 32 million fiber passings by year-end. Management raised full-year adjusted EPS growth guidance to 5% to 6% and lifted the buyback authorization.

CFO Tony Skiadas said plainly, “The dividend is still ironclad for us, and we raised the dividend.” With $21.5 billion or more in full-year free cash flow guidance and a forward P/E of 10, Verizon skews toward yield first and modest growth second.

Comcast: A Cheaper Setup With an Optionality Kicker

Comcast (NASDAQ:CMCSA) trades at $26.67 and a forward P/E of 8, with a 5% dividend yield. Wireless net additions of 448,000 were the best quarter on record, and Peacock reached profitability with $189 million of EBITDA. Q2 free cash flow was $4.6 billion.

Comcast paused its buyback as of July 1 pending the NBCUniversal and Sky spin-off, and adjusted EBITDA fell 13.4% year over year. The dividend continues, and holders receive shares of the standalone media company when the separation closes in roughly a year. That is optionality XLC cannot replicate.

How to Think About the Swap

The three stocks together deliver a blended yield in the mid-5% range, versus the sub-1% distribution profile of XLC’s underlying holdings. You give up direct exposure to Meta, Alphabet, and Netflix, and you accept single-name risk on three balance sheets carrying meaningful debt: AT&T’s net leverage of 2.68 times is above its 2.5 times target, and Verizon sits at roughly 2.6 times. That blended yield is also close to what a mid six-figure balance needs to throw off a real monthly check (we sketched the full math for turning $250K into $1,500 a month in a free report: here). If you hold XLC in a taxable account, selling triggers capital gains. Redirecting new contributions into the three telecom names, rather than selling existing XLC shares, avoids triggering those gains.

Reading the Fit Before You Act

Investors who own XLC for mega-cap tech and media exposure with a modest income tilt are getting what the fund is built to deliver. If you bought it thinking it was a telecom income vehicle, this direct trio delivers materially more yield, cleaner exposure to fiber and wireless convergence, and specific capital-return programs you can track quarter by quarter. That is a different job, and it deserves a different tool.

The post Think You Bought a Telecom ETF? You Mostly Own Big Tech appeared first on 24/7 Wall St..

Own Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) for the income, and you are being quietly shortchanged by design. The S&P U.S. Dividend Growers Index that VIG tracks removes the top 25% highest-yielding eligible names before construction. At each annual reconstitution, the top 25% of eligible stocks ranked by dividend yield are excluded from new admission, while existing holdings get a buffer and can remain unless they climb into the top 15%. In other words, some of the biggest dividend payers are screened out by design before they can ever enter VIG.

What You’re Actually Paying

VIG’s expense ratio is not the problem. Vanguard charges just 0.04%, or roughly $4 annually for every $10,000 invested. Even compounded over 20 years, that fee has a minimal impact on long-term returns. The more important cost comes from the dividend income VIG’s methodology deliberately excludes.

Consider four names either screened out or nearly absent from VIG’s methodology. AT&T (NYSE:T) pays an annualized dividend of $1.11 at $24.90 a share. Verizon (NYSE:VZ) pays $2.83 annualized at $48.54. Altria pays $4.24 annualized at $65.19. Realty Income yields 4.95% and pays monthly. A dividend fund willing to include a slice of these names could throw off hundreds of extra dollars of annual income on a $10,000 stake. Compound that missed income across 10 or 20 years of reinvestment and the gap grows into thousands.

Realty Income’s monthly schedule is a perfect example. Investors who actually want checks arriving every 30 days, rather than quarterly, have options a rules-based growth screen won’t surface (we rounded up seven of our favorite monthly payers in a free report here: The 7 Monthly Dividend Stocks That Pay You Every 30 Days).

The Part the Factsheet Doesn’t Highlight

The methodology is clear, albeit tucked deep within the prospectus. Said methodology states that companies must show at least 10 consecutive years of dividend increases to qualify. Then S&P discards the top quartile by indicated yield. High yields sometimes flag distress, so the screen has some defensive logic. It also means the fund is engineered to underweight income, then marketed to investors who buy dividend ETFs precisely for income.

The performance argument has cracks too. Over the past five years, Altria has returned 99.44%, ahead of VIG’s own 66.57%. AT&T returned 59.83% over the same window. The high-yield-equals-danger heuristic screens out real winners alongside real losers.

The second hidden cost is overlap. VIG’s largest weights concentrate in the same mega-cap quality names that anchor every broad Vanguard equity fund. VIG held $124.6 billion in net assets as of April 30, 2026, and much of that book duplicates what a total-market indexer already owns. The dividend-growth label can obscure what functions as a large-cap quality tilt.

The Cheaper Mirror

Investors who want exposure to the yield VIG screens out have peers in the same category. Schwab US Dividend Equity ETF (NYSEARCA:SCHD) holds several high-yield names VIG excludes, with Verizon at 3.65% of the portfolio alongside energy and financial payers such as Chevron at 3.83%. SCHD closed May 2026 with $94.9 billion in net assets. iShares Core Dividend Growth (NASDAQ:DGRO) runs a fact-sheet expense ratio of 0.08% (still cheap) and skips the top-quartile yield cut. Over five years, VIG has returned 66.57% versus SCHD’s 60.82%, close enough that the recurring yield differential materially reshapes the total-return picture over time.

What This Means for You

The relevant question is what you bought VIG to accomplish. If steady growth of a dividend-tinted large-cap sleeve was the goal, VIG delivers. If income was the goal, ask why your rulebook throws away the top 25% of the yield curve before you ever see a check.

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All the major Wall Street firms we cover here at 24/7 Wall St. have a list of the top stock picks for their institutional and retail clients to invest in. Typically, these are companies analysts have high conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have strong upside to the assigned price target and are assigned a Buy or Overweight rating, depending on the company providing the coverage. After a furious rally off the late-March lows and with all major indices trading at or near all-time highs, many investors are treading carefully as we head toward September. With a very solid second-quarter earnings season about to wrap up, we were interested to see which stocks were on the August edition of J.P. Morgan’s Analyst Focus List.

No new companies were added to the August edition, and two energy companies were removed. We decided to screen the list for dividend stocks that J.P. Morgan analysts are very bullish on, and all five offer steady passive income and the potential to deliver solid total return.

The research team at J.P. Morgan updates its U.S. Analyst Focus List monthly, as the company describes:

The U.S. Analyst Focus List is updated monthly. Names may be removed mid-month when a valuation target has been largely or wholly achieved, or the original rationale is no longer valid. We may also add new ideas mid-month. Analysts will publish the explanation for all mid-month changes in a research note.

Why Do We Recommend J.P. Morgan’s Analyst Focus List Stocks?

J.P. Morgan is a leading investment firm on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come.

Here are the five highest-yielding J.P. Morgan Analyst Focus List stocks.

Annaly Capital

With a massive 12.20% dividend yield and trading right near the J.P. Morgan target price, this is a total passive-income play. Annaly Capital Management (NYSE: NLY) is a diversified capital manager with investment strategies across the mortgage finance sector.

The company owns a portfolio of real estate-related investments, including:

• Mortgage pass-through certificates
• Collateralized mortgage obligations
• Credit risk transfer (CRT) securities
• Securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans, and mortgage servicing rights

Its investment groups include:

• Annaly Agency Group
• Annaly Residential Credit Group
• Annaly Mortgage Servicing Rights Group

Annaly Agency Group invests in agency mortgage-backed securities collateralized by residential mortgages, while Annaly Residential Credit Group invests in non-agency residential mortgage assets within residential and commercial markets. Annaly Mortgage Servicing Rights Group invests in MSR, which grants the right to service residential mortgage loans in exchange for a portion of the interest payments on those loans.

The J.P. Morgan price target of $24 is likely to go higher.

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecommunications company has undergone a lengthy restructuring process while maintaining a solid dividend yield of 4.52%. Thirteen analysts have assigned the stock a Buy rating, indicating broad Wall Street support. AT&T provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• SecuT
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

This segment also provides residential customers with fiber broadband and legacy voice telephony services.

The company markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a $33 price target for the stock.

First Industrial Realty Trust

While off most people’s radar, this real estate investment trust (REIT) pays a solid 3% dividend and offers decent upside to JPMorgan’s target. First Industrial Realty Trust (NYSE: FR) is a self-administered and fully integrated real estate company. The company owns, operates, develops, and acquires logistics properties. Through its fully integrated operating and investing platform, it provides facilities and customer service to multinational corporations and regional firms essential to their supply chains.

In total, the company owns and is developing approximately 71.6 million square feet of industrial space concentrated in 15 target MSAs. Its tenants are engaged in a variety of businesses, including:

• E-commerce
• Third-party logistics and transportation
• Consumer and other manufactured products
• Retail and consumer services
• Food and beverage
• Lumber and building materials
• Wholesale goods
• Health services
• Governmental and other

Through a wholly owned TRS of the operating partnership, the operating partnership owns an equity interest in a joint venture. The company also provides various services to the joint venture.

J.P. Morgan’s target price is $74.

Digital Realty Trust

Digital Realty Trust (NYSE: DLR) owns, operates, and invests in carrier-neutral data centers worldwide and pays a solid 2.47% dividend. This industry leader is one of the best pure-play data center stocks for AI exposure. Digital Realty is a REIT that owns, acquires, develops, and operates data centers through its operating partnership subsidiary.

The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals, ranging from:

• Cloud and information technology services
• Communications and social networking in financial services
• Manufacturing
• Energy
• Healthcare
• Consumer products

Its portfolio includes over 308 data centers: 121 in the United States, 112 in Europe, 36 in Latin America, 16 in Africa, 16 in Asia, six in Australia, and three in Canada.

PlatformDIGITAL is a global data center platform designed to scale digital businesses, enabling customers to deploy their critical infrastructure with a trusted international data center provider.

J.P. Morgan has set a target price of $235 for the shares.

EPR Properties

This REIT invests in some of the most popular entertainment companies and was added to the JPMorgan Equity Analysts Focus List in July. EPR Properties (NYSE: EPR) is a leading experiential net-lease REIT specializing in select enduring experiential properties and pays a hefty 6.02% dividend.

EPR recently increased its monthly dividend by 5.1% and expects funds from operations (FFO) per share growth of more than 5% in 2026, supporting continued dividend increases. After suspending its dividend during COVID-19, EPR has recovered with five consecutive years of dividend increases. Its $6.9 billion property portfolio generates solid cash flow, and FFO well covers the $0.31 per share monthly dividend.

J.P. Morgan gave this brief reason for adding the shares in July: “High dividend yield that we see as safe and growing, with earnings growth likely to be toward the top of the net-lease REIT peer group.”

The company operates through two segments. The Experiential segment consists of approximately:

• 148 theater properties
• 59 eat and play properties
• 25 attraction properties
• 11 ski properties
• Four experiential lodging properties
• One gaming property
• One cultural property
• 22 fitness and wellness properties

The company’s Education segment comprises 46 early childhood education centers and nine private schools.

The investment portfolio includes ownership of and long-term mortgages on experiential and educational properties. The company has investments in approximately 44 states. All of its owned single-tenant properties are leased on long-term, triple-net terms.

J.P. Morgan’s price target is $62.

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The S&P 500 index tracks the performance of the 500 biggest companies in the United States. It is considered a top indicator of the U.S. stock market’s health. The venerable index is market-capitalization-weighted and tracks the 500 leading publicly traded companies in the U.S. Typically, larger companies have a significant impact on the index. The roaring success of the mega-cap Magnificent 7 stocks over the past few years is a testament to that. While the equal-weighted index may make more sense now, some of its individual stocks are incredible back-to-school bargains.

We screened the S&P 500 for high-yielding dividend stocks trading at attractive valuations across metrics including price-to-earnings and free cash flow. Five stocks caught our attention as strong ideas for growth and income investors looking to enter the fall months with less risk in their portfolios, generate dependable passive income, and deliver solid total returns over the long haul. All five are rated Buy by the top Wall Street firms we cover.

Why Do We Cover the High-Yielding S&P 500 Dividend Stocks?

Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring process while maintaining its core operations. Eleven analysts rate the stock a Buy, indicating broad support from Wall Street. With a forward P/E near 10x, a dividend yield of 4.52%, and a moderate payout ratio of 37.19%, it has room to keep paying.

AT&T was a long-time Dividend Aristocrat before structural corporate changes and spinoffs altered its payout strategy.

AT&T provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services. Through its company-owned stores, agents, and third-party retail stores, it sells:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

This segment also provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

Argus has a Buy rating with a $30 target price.

General Mills

With products that never go out of style and a strong 6.55% dividend yield, this is a rebound story that will reward patient investors. General Mills (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods and has a P/E ratio of 9.23, suggesting it may be undervalued relative to the consumer staples sector average. The company generates strong free cash flow, typically over $2 billion annually, which supports the current dividend even amid softer sales.

Its segments include:

• North America Retail
• International
• North America Pet
• North America Foodservice

The North America Retail segment includes a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains, convenience stores, and e-commerce grocery providers.

The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.

The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores. The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.

Piper Sandler has an Overweight rating and a $45 target price.

Kinder Morgan

Kinder Morgan (NYSE: KMI), one of North America’s largest energy infrastructure companies, has a solid 3.72% dividend yield. This is one of the top energy stocks and remains a Wall Street favorite, paying a solid, dependable dividend. This large-cap energy/midstream name is often grouped as a “cheap yield” pick, benefiting from steady pipeline cash flows rather than commodity price swings.

The company operates the largest natural gas transmission network in the U.S., with about 66,000 miles of pipeline that transport 40% of the country’s gas production. It serves 20% of U.S. power demand, positioning it to benefit from the projected 15% to 20% of electricity demand from AI data centers by 2030. The company’s extensive gas storage capacity (15% of U.S. total) and fee-based revenue model provide stability and growth potential as gas volumes rise.

Kinder Morgan operates through four segments. The Natural Gas Pipelines segment:

• Owns and operates the interstate and intrastate natural gas pipeline and underground storage systems
• Natural gas gathering systems and natural gas processing and treating facilities
• Natural gas liquids fractionation facilities and transportation systems
• Liquefied natural gas liquefaction and storage facilities

The Products Pipelines segment owns and operates refined petroleum products, crude oil, and condensate pipelines, associated product terminals, and petroleum OKE pipeline transmission facilities. The Terminals segment owns and operates liquids and bulk terminals that store and handle various commodities, including:

• Gasoline
• Diesel fuel
• Chemicals
• Ethanol
• Metals
• Petroleum coke
• Owns tankers

Lastly, the CO2 segment produces, transports, and markets CO2 to recover and produce crude oil from mature oil fields. It owns interests in/or operates oil fields, gasoline processing plants, and a natural gas pipeline system in West Texas. It owns and operates about 83,000 miles of pipelines and 144 terminals.

UBS has a Buy rating on the shares, with a $38 target price.

PepsiCo

This top consumer staples stock reported surprisingly solid second-quarter earnings and will continue supplying goods for upcoming football tailgates and parties. PepsiCo (NASDAQ: PEP) is a global food and beverage company that pays a notable 4.09% dividend yield. The company’s low volatility (beta of 0.375) makes it a steady, defensive holding, which makes it a perfect holding while waiting for a comeback.

Its Frito-Lay North America segment offers:

• Lays and Ruffles potato chips
• Doritos, Tostitos, and Santitas tortilla chips
• Cheetos cheese-flavored snacks, branded dips
• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker Oatmeal
• Grits
• Rice cakes
• Natural granola and oat squares
• Pearl Milling mixes and syrups
• Quaker Chewy granola bars
• Cap’n Crunch cereal
• Life cereal
• Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi
• Gatorade
• Mountain Dew
• Diet Pepsi
• Aquafina
• Diet Mountain Dew
• Tropicana Pure Premium
• Sierra Mist
• Mug

VICI Properties

VICI Properties (NYSE: VICI) is a New York City-based real estate investment trust that specializes in casino and entertainment properties. It offers a stellar dividend yield of 6.83% and is one of Wall Street’s top picks in the net lease group. It is ideal for more conservative investors seeking gaming exposure and a substantial dividend. The stock is frequently flagged, alongside other stocks in this post, in dividend screens as a “safer” S&P 500 dividend dog with an attractive yield backed by long-term triple-net leases.

VICI Properties has one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:

• Caesars Palace Las Vegas
• MGM Grand
• The Venetian Resort Las Vegas

VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms, as well as over 500 restaurants, bars, nightclubs, and sportsbooks. Gaming revenue has proven remarkably resilient in recent downturns, and its triple-net lease structure means it collects rent regardless of swings in tenant profitability.

VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:

• Bowlero
• Cabot
• Canyon Ranch
• Chelsea Piers
• Great Wolf Resorts
• Homefield
• Kalahari Resorts

VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.

Barclays has an Overweight rating with a $31 price objective.

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Replacing a $75,000 salary with dividend income is a math problem before it is an investment problem. The equation is simple: income target divided by yield equals the capital you need. What changes is how much risk you take to move the required number down.

For context, the 10-year Treasury pays almost 5%, and the Fed Funds upper bound sits near 4%. Anything a dividend portfolio pays has to be judged against that risk-free bar.

The Conservative Tier: 3% to 4% Yield

At a blended 3.5% yield, replacing $75,000 requires roughly $2.1 million in capital. This is the dividend-growth zone: broad dividend ETFs and aristocrats where the payout compounds year after year.

Johnson & Johnson (NYSE:JNJ) just declared its 64th consecutive year of dividend increases, lifting the quarterly payout 3% to $1.34. Procter & Gamble (NYSE:PG) is on its 70th consecutive year of raises and plans ~$10 billion in dividends in FY2027. Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) holds $94.9 billion in net assets across names like Qualcomm, Texas Instruments, and UnitedHealth.

The tradeoff is capital intensity. You need the most money upfront, but the income stream grows and the principal tends to appreciate.

The Moderate Tier: 5% to 7% Yield

At 5%, the requirement drops to $1.5 million. At 7%, it falls to roughly $1.1 million. This is REIT and high-dividend telecom territory.

Realty Income (NYSE:O) yields 4.93%, pays monthly, and just recorded its 115th consecutive quarterly dividend increase. AT&T pays $1.11 annualized, with a yield around 4.97% at recent prices and management guiding $18 billion+ in free cash flow for 2026.

Payouts here are higher but grow slowly. AT&T is a clean example: the current dividend has been flat since January 2022 after being cut from $0.52 quarterly.

The Aggressive Tier: 8% to 12%+ Yield

At 10%, the capital requirement drops to $750,000. At 12%, about $625,000. This is BDC and leveraged income-fund territory.

Main Street Capital (NYSE:MAIN) illustrates the model. Between $0.265 monthly regular dividends and $0.30 quarterly supplementals, the annualized payout runs about $4.38 per share, a yield near 7.8%. MAIN posted 19% annualized ROE in Q2 2026 and its 20th consecutive quarterly supplemental.

The catch: supplementals are variable, NAV can compress in credit stress, and per-share dividend growth is slower than dividend-growth blue chips.

What Most Readers Miss

Lower yields often win over time because the payout compounds. JNJ’s Q1 dividend was $0.75 in 2016 and is $1.34 today. SCHD returned 236% over the past decade, and JNJ 178%. MAIN returned 265% over the same 10 years, but per-share payout growth has been modest and shares are down about 5% over the past year.

As advisor Wes Moss put it on The Clark Howard Podcast, “dividends have grown at twice the rate on average of inflation… that really protects our purchasing power.” With CPI at 332.8 and drifting higher, a flat 10% payout loses ground; a growing 3.5% payout gains it.

Three Steps to Take Now

1. Recalculate the target. A $75,000 gross salary translates to less in actual spending. Federal, state, and payroll taxes typically shrink the replacement need to $55,000 to $60,000. Average annual household expenditures were $78,535 in 2024, so anchor to your actual outlays.
2. Blend the tiers. A 60% conservative, 30% moderate, 10% aggressive mix using names like JNJ or SCHD alongside Realty Income and MAIN can produce a blended yield near 5% while preserving dividend growth. That puts the target closer to $1.5 million than $2.1 million.
3. Model the tax hit. Qualified dividends from JNJ, PG, and O’s operating partnership income are taxed differently than MAIN’s BDC distributions, which are largely ordinary income. In a high bracket, the after-tax yield gap can flip the ranking.

The post How Much Do You Really Need Invested to Replace a $75,000 Salary With Dividends? appeared first on 24/7 Wall St..

The artificial intelligence-radio access network (AI-RAN) thesis is moving from presentations to real-world implementation, and Nokia (NYSE:NOK) is now at the center of this development. With Nvidia (NASDAQ:NVDA) Aerial platform pairing with Nokia radio software and T-Mobile (NASDAQ:TMUS) serving as a marquee field-trial partner, investors are trying to price a technology transition that has already lifted Nokia stock 149.3% over the past year.

Why the Nvidia and T-Mobile Trials Matter

Nokia’s tie-up with Nvidia, anchored by Nvidia’s roughly $1 billion investment and about a 2.9% stake, integrates Nvidia’s AI compute into Nokia’s radio access portfolio for AI-native 6G. T-Mobile is a lead trial partner, with work extending through Nokia’s AI-RAN Center in Dallas. Commercial availability is targeted for late 2027, so this is a multiyear build, not a next-quarter catalyst.

CEO Justin Hotard framed the launch pointedly on the Q2 call: “Last week we launched the industry’s first commercial AI-RAN platform, which will help customers unlock more from their networks, including more than 100% spectral efficiency gains by 2028.” A GPU-based AI-RAN targeting double spectrum capacity is the pitch operators like T-Mobile are stress-testing.

The Numbers Behind the Narrative

Q2 2026 results gave the thesis fundamental support. Nokia posted revenue of $5.48 billion (approx. €4.8 billion), up 5.92% year over year, and EPS of $0.08 versus $0.07 expected. The AI & Cloud line more than doubled, reaching €446 million ($508.96 million), with Q2 order intake of roughly $3.2 billion (€2.8 billion).

Hotard added: “Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders.” Optical Networks grew 19% and IP Networks 15%, both fueled by hyperscaler and telco buildouts adjacent to the AI-RAN story.

What Investors Are Paying For

At $10.32 a share, Nokia trades at roughly 24x forward earnings, with an analyst target price of $15.02. Full-year 2026 guidance calls for comparable operating profit of €2.1 billion to €2.6 billion, tracking above the midpoint.

The Risks

The bull case has some caveats. Ericsson (NASDAQ:ERIC) is running its own AI-in-RAN pilots with AT&T (NYSE:T) and T-Mobile, some without GPUs at all, which challenges Nokia’s compute-heavy architecture. Retail enthusiasm is already cooling, with Reddit sentiment sliding from 78 bullish on earnings day to 52 neutral this week. Free cash flow swung to negative €732 million ($835 million) in the quarter on restructuring charges. Shares are down 17.0% over the past month.

What to Watch Next

The signal for investors is order conversion. Hotard expects about half of Q2 orders to convert to revenue over the next 12 months. If the Nvidia and T-Mobile trials produce measurable spectral efficiency gains, Nokia’s AI-RAN pitch will gain proof points ahead of the commercialization window.

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SpaceX (NASDAQ:SPCX) never ceases to be in the headlines, it seems. SPCX stock rallied Wednesday, closing up 9.65% to $146.15; the catalyst was a company town hall meeting in which SpaceX founder Elon Musk predicted that Starlink could eventually carry the vast majority of the world’s internet traffic.

The move in SPCX stock caps a bumpy summer, with the stock barely breaking even over the past month, pressured by post-IPO dilution and a massive 911.5 million share unlock on August 6. For investors, Musk’s bold prediction could prompt them to take a closer look at their SpaceX share positions.

The 90% Prediction Behind the Rally

In a company update posted to the official @SpaceX account on X, Musk told employees the Starlink team “brought from nothing an entire global Internet system… the first high-bandwidth global Internet system to ever exist.” The X posting with the full video can be viewed here. Musk added, “I actually think that down the road it will probably do the majority of the Internet. In fact, I think it might end up doing over 90% of all Internet traffic on Starlink.”

Musk noted that Starlink already has “almost 11,000 satellites in orbit… almost twice as many satellites as everyone else combined.” He added that “with Starlink V3 and beyond, we’ll go to 100,000 satellites.”

The scale that Musk envisions is already materializing. SpaceX’s Q2 2026 Connectivity revenue hit $4.29 billion, up 66% year over year, with Starlink subscribers doubling to 12 million and Enterprise and Government revenue up 108%. Furthermore, SpaceX’s total revenue jumped 92% to $7.81 billion, easily beating estimates.

Peers and Partners Face a Concentration Problem

SpaceX’s engineering achievement deserves credit: roughly twice as many satellites as the rest of the industry combined, on a path to 100,000, is a genuinely staggering build-out. However, Musk’s forecast, if even partially accurate, describes a market structure that global communications hasn’t really seen.

Wireless calling prices have collapsed for decades because rivals kept crowding into the pipe. One operator controlling 90% of internet traffic would flip that dynamic and hand a single company enormous pricing power in a historically fragmented industry. That’s the nightmare framing for SpaceX competitors. The concern centers on market concentration.

The most-funded direct rival is Amazon‘s (NASDAQ:AMZN) Project Kuiper. Beyond Kuiper, AST SpaceMobile (NASDAQ:ASTS), Globalstar (NASDAQ:GSAT), and Viasat (NASDAQ:VSAT) are all racing to build competing direct-to-device or broadband constellations.

Terrestrial incumbents like AT&T (NYSE:T) sit in a hybrid spot. They already partner with satellite operators for direct-to-cell coverage, so they’re as much partners as competitors here, but their fiber and 5G economics look different if orbital broadband ever dominates last-mile traffic.

What to Watch Now

For thematic exposure, the Procure Space ETF (NASDAQ:UFO) is a fitting vehicle. The UFO ETF is narrow and unleveraged, and heavy weightings in names like GSAT, ASTS, and VSAT mean sector concentration cuts both ways.

Irrespective of Musk’s predictions, SPCX stock is likely to remain volatile as the space-stock sector involves a multitude of unknowns. Investors can watch for whether the Musk narrative sticks through the pending $60 billion Cursor close and the next Starship V3 flight. If the 90% forecast starts to look even directionally credible, competitor multiples may compress well before Starlink actually gets there.

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Elon Musk used a recent SpaceX town hall, posted to the company’s X profile, to reset expectations for what Starlink is actually trying to become. His framing is transformational: “Almost 11,000 satellites in orbit. That’s almost twice as many satellites as everyone else combined. And with Starlink V3 and beyond, we’ll go to 100,000 satellites,” Musk said. He added that Starlink “might end up doing over 90% of all Internet traffic” and described the effort as rebuilding “the entire Internet in space.”

The 100,000 Number in Context

The scale gap between Starlink and public satellite competitors is now enormous. AST SpaceMobile (NASDAQ:ASTS), the closest publicly traded direct-to-device rival, has 13 spacecraft in orbit and is targeting approximately 45 satellites by early 2027. CEO Abel Avellan told analysts on the Q2 call that AST’s approach is deliberately different: “We are building the direct-to-device (D2D) network of the future today in partnership with, not in competition with, mobile network operators.”

AST reported $31.52 million in Q2 revenue and a $125.9 million loss tied to the BB7 launch incident. Shares are up roughly 50% over the past year but only 2% YTD.

Legacy operator Viasat (NASDAQ:VSAT) is being squeezed on the other end. CEO Mark Dankberg told investors “the combination of growth in the space market, and our business and technical progress is creating more opportunity for us than ever.” Yet fixed broadband services fell 27% year over year last quarter, even as the stock has run sharply year to date on defense backlog strength.

The Wireless Wedge

Musk’s Tesla earnings comments framing Starlink as a competitor to AT&T (NYSE:T) and Verizon (NYSE:VZ) land differently now. Both carriers are betting on AST SpaceMobile for their satellite-to-cell answer. AT&T CEO John Stankey argued “network performance and operating scale can’t be matched” with fiber locations at 38.6 million. Verizon CEO Dan Schulman is leaning on AI: “with the emergence of AI infrastructure revenue, we are fundamentally reshaping Verizon’s growth trajectory.”  VZ stock is up 15.3% YTD while AT&T is down 2.4% over the same period.

T-Mobile US (NASDAQ:TMUS) took the opposite side, embedding Starlink directly into its consumer offer. CEO Srini Gopalan told investors “we see a tremendous runway for growth across both wireless and broadband, as well as new businesses. We’re just getting started.” Q2 postpaid service revenue rose 12.6% to $15.85 billion. The stock is down 12.8% YTD.

What Wall Street Is Pricing

SemiAnalysis projects that one gigawatt of SpaceX inference capacity could generate about $31 billion to $48 billion in annualized revenue under its Anthropic and Google deals. For comparison, AST reaffirmed 2026 revenue of $150 million to $200 million with a revenue backlog around $1.3 billion. If Musk delivers even a fraction of the 100,000-satellite plan, the addressable pie shifts fast, and the public tickers investors can actually own to play it remain a very short list.

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There’s no denying it: the quantum-computing sector has been unwound. Over the past month, pure-play quantum stocks have sold off sharply as investors pulled capital out of high-multiple and often pre-profit tech. For example, IonQ (NYSE:IONQ) shares are down 39% over the trailing month, with the stock changing hands midday Wednesday at $32.86.

Rigetti Computing (NASDAQ:RGTI) shares are down 30% over the same stretch, and D-Wave Quantum (NYSE:QBTS) shares are also down 30%.  Meanwhile, Quantum Computing (NASDAQ:QUBT) shares have slid 24% in a month. The pain has been broad, but not uniform.

Sector-Wide De-Risking Drives the Slide

The selloff in IonQ, Rigetti, D-Wave, and Quantum Computing shares looks less like a company-specific story and more like a sentiment reset across speculative tech. Investors have trimmed exposure to high-multiple, pre-profit names as AI-infrastructure and semiconductor valuations were re-priced. Quantum pure-plays sit at the far end of that risk spectrum.

The valuation setup makes the reaction easier to understand. IonQ stock carries a trailing 12-month P/E ratio of 84.26x, while Rigetti, D-Wave, and Quantum Computing stocks have no meaningful trailing 12-month P/E ratios because they were unprofitable during that time frame. When multiples reset, names anchored to future-scale narratives can take the biggest hit.

The fundamentals reinforce that story. IonQ posted Q1 2026 revenue of $64.67 million, up 755% year over year (YoY), but its adjusted EBITDA loss guide for the year sits at -$330 million to -$310 million. D-Wave reported Q1 2026 revenue of $2.86 million, down 81% YoY on lumpy system-sale timing, though bookings jumped 2,000% YoY. Rapid growth, deep losses, and heavy stock-based compensation are difficult for investors who want to see profits.

The Bull Case Hasn’t Vanished

Recent catalysts complicate the “more pain” thesis. IonQ received final regulatory approval to complete its acquisition of SkyWater Technology (NASDAQ:SKYT), a large U.S.-based semiconductor foundry, with closing expected Friday, July 31. IonQ frames the combination as a vertically integrated, full-stack quantum platform with a secured domestic chip supply.

D-Wave shares popped earlier in the month after AT&T (NYSE:T) agreed to expand use of D-Wave’s quantum computing technology across its network operations. Rigetti stock and peers rallied in sympathy. AT&T stock, for context, is up 10% over the past month, a reminder that defensive telecom is exactly what quantum is not.

Moreover, policy tailwinds remain in play for IonQ, Rigetti, D-Wave, and Quantum Computing. In May, the U.S. Department of Commerce signed letters of intent to provide more than $2 billion in federal incentives to nine quantum-related companies in exchange for minority equity stakes. That kind of federal support gives the sector a structural bid the broader market lacks.

The ETF Is Holding Up Better

The Defiance Quantum ETF (NASDAQ:QTUM) is down 16% over the past month, well less than the pure-plays. The QTUM ETF‘s basket spans quantum and adjacent computing names, so single-stock blowups get diluted. It’s not leveraged, and it carries an expense ratio of 0.4%, offering thematic exposure without single-name volatility.

Concentration risk cuts the other way for the pure-plays. The prediction markets on Polymarket peg IonQ’s odds of beating its next quarterly print at just 6.5%, even as Wall Street analysts hold an average price target of $68.41 on IonQ stock. That gap between crowd sentiment and sell-side optimism is where the next move gets decided.

What to Watch Next

Traders can watch for the SkyWater deal close on July 31, IonQ’s Q2 2026 earnings report on August 5, and D-Wave and Rigetti reports on August 6. Given the beta profile, investors may want to size their positions carefully.

The next two weeks could define whether this correction is a pause or the start of a deeper reset for IonQ, Rigetti, and D-Wave. You can monitor the QTUM ETF as a sector barometer, and pay close attention to guidance updates alongside the headline prints.

For now, the setup rewards patience over conviction. Traders chasing bounces should respect the volatility, while long-term believers may find better entries if the sector-wide de-risking continues into August.

The post IonQ, Rigetti, and D-Wave Quantum Are Down 30% in a Month. Is More Pain Coming for Quantum Computing Stocks? appeared first on 24/7 Wall St..

Retirees rebuilding income streams amid the current interest rate environment need dividend payers with cash-flow durability, not yield traps. The five names below span tobacco, telecom, pharma, and asset management, and each brings a distinct income thesis backed by tool-verified payout data as of July 14, 2026. One caveat up front: Philip Morris International is domiciled in Switzerland, so US investors typically face a 15% Swiss withholding tax on dividends (usually recoverable in taxable accounts via the foreign tax credit, but not in IRAs).

Altria (MO)

Altria (NYSE:MO) yields 5.67% at a recent price of $74.82, with a most recent declared quarterly dividend of $1.06 per share, paid on July 10. The stock has climbed 27.42% over the past year.

The bull case is dividend durability paired with earnings momentum. Altria reaffirmed FY2026 adjusted diluted EPS guidance of $5.56 to $5.72, and Q1 2026 delivered adjusted diluted EPS of $1.32 on revenue of $5.43 billion. The smokeable segment still throws off 65.1% margins, funding $1.8 billion in Q1 dividends and buybacks. Forward P/E sits at just 13.

Risk: Marlboro retail share slipped 1.4 points to 39.7%, on! nicotine pouch share fell 4.2 points to 13.4%, and domestic cigarette volumes declined roughly 5%. Long-term volume erosion is the structural headwind pricing power must keep outrunning.

Philip Morris International (PM)

Philip Morris International (NYSE:PM) yields 2.94% — lower than the others on this list — but its dividend is compounding the fastest. The most recent declared quarterly payout is $1.47, paid on July 20, up from $1.35 in the first half of 2025.

The thesis is a growth-plus-income hybrid built on smoke-free products. PM guided FY2026 adjusted diluted EPS of $8.36 to $8.51, a 10.9%–12.9% jump, and targets a 9%–11% CAGR through 2028 ex-currency. IQOS reaches 108 markets, ZYN reaches 58 markets, and smoke-free is roughly 41.5% of revenue. Analyst target: $194.86.

Risk: Q1 ZYN shipments fell 23.5% on distributor destocking, and PM has paused buybacks to prioritize deleveraging. Add the Swiss withholding wrinkle for taxable-account investors.

AT&T (T)

AT&T (NYSE:T) just gave income investors a rare piece of good news: the quarterly dividend was raised to 33 cents per share, ex-date July 17, payable Aug. 3. That works out to an annualized forward rate of $1.3376, a 20.4% increase off the 27-cent rate that had held for 16 straight quarters.

The bull case is converged fiber-plus-5G economics finally translating to cash. AT&T reaffirmed FY2026 free cash flow of $18 billion or more, plans roughly $8 billion in 2026 buybacks, and targets $45 billion in total shareholder returns from 2026 to 2028. Q1 EPS came in at 57 cents, up 11.8% year-over-year, and the payout ratio remains conservative at roughly half of 2025 reported EPS of $2.11.

Risk: Total debt sits at $138.4 billion, with net debt/EBITDA expected to rise toward 3.2x after the EchoStar transaction. Shares are still down 16.35% over the past year.

Pfizer (PFE)

Pfizer (NYSE:PFE) is the ultra-high-yield pick here, sporting a 6.81% dividend yield at roughly $25.25. The most recent quarterly dividend of 43 cents went ex on July 24, and pays out on Sept. 1.

Q1 2026 showed the earnings recovery investors need to underwrite this yield: adjusted diluted EPS of 75 cents on revenue of $14.45 billion, up 5.4% year-over-year. Management reaffirmed FY2026 revenue of $59.5–$62.5 billion and adjusted EPS of $2.80–$3.00, which comfortably covers the $1.72 annualized dividend. Vyndamax U.S. exclusivity was extended to June 2031, and forward P/E of 8 discounts a lot of bad news.

Risk: COVID revenue is collapsing (Comirnaty down 59%, Paxlovid down 63%), and management flagged a $1.5 billion 2026 revenue headwind from loss of exclusivity. Most-Favored-Nation drug pricing remains an open policy risk.

T. Rowe Price (TROW)

T. Rowe Price (NASDAQ:TROW) yields 4.27%, with the current quarterly dividend at $1.30, last paid on June 29. Dividend history in the record shows increases in every calendar year going back to at least 1999, with no cuts across that span.

The bull case is a debt-free balance sheet with $3.73 billion in cash supporting a Dividend Aristocrat payout. Q1 2026 adjusted EPS beat expectations at $2.52 versus $2.35 estimated, a 7.234% surprise, with revenue of $1.86 billion and average AUM of $1.78 trillion, up 9.6% year-over-year. The company returned $629 million to shareholders in Q1.

Risk: Persistent net client outflows totaled $13.7 billion in Q1 2026 and $56.9 billion for FY2025, and fee rates compressed to 38.4 basis points. Analyst sentiment is cool: nine Hold ratings, one Sell rating and three Strong Sell ratings with a 12-month price target of $106.33 (notably below the current share price of $121.68). Retirees buying today are paying for durability, not near-term upside.

The post 5 High-Yielding Dividend Stocks for Retirees to Buy and Hold Forever appeared first on 24/7 Wall St..

While many Baby Boomers have enjoyed a long bull market over the past 35 years, there is a point when income becomes more critical than stock appreciation. The reason is simple: those who leave their careers to enjoy a well-deserved retirement lose the benefits of a regular salary, such as 401(k) matching and company-paid healthcare. In addition, many Boomers use their retirement years to travel and enjoy the rewards they have worked hard to achieve throughout their lives. Choosing investments wisely is imperative, and at 24/7 Wall St., we continually seek the best ideas for Baby Boomers and retirees.

One concern many Boomers and retirees have is generating enough passive income to maintain the lifestyle to which they were accustomed during their working days. One of the best ideas, and one we have championed here at 24/7 Wall St. for years, is quality high-yield dividend stocks. The problem is that many of our favorite companies have traded higher over the past few years, and the risk-reward for many has diminished. We screened our 24/7 Wall St. high-yield stocks database for well-known companies that, for various reasons, are trading far below what many on Wall Street consider fair value.

We found five companies that most investors are very familiar with, all paying substantial and reliable dividends, and all rated Buy by the top Wall Street firms we cover.

Why Do We Cover the High-Yielding Dividend Stocks?

Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring process while maintaining a solid 4.55% dividend yield. Thirteen analysts have given the stock a Buy rating, indicating broad support from Wall Street. The stock was hit on concerns that Starlink was taking internet share. Still, strong earnings, along with the addition of 432,000 net postpaid phone subscribers and 646,000 high-speed internet customers, both above estimates, have helped quell that argument.

The company provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services. Through its company-owned stores, agents, and third-party retail stores, it sells:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a $34 price target for the stock.

Energy Transfer

Energy Transfer (NYSE: ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a 6.71% distribution yield. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins. The company has raised its 2026 EBITDA guidance and is well-positioned to benefit from surging natural gas demand driven by AI-powered data centers. This tailwind, combined with its attractive high yield, has been a key bullish catalyst.

The company is a publicly traded limited partnership with core operations that include:

• Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
• Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
• NGL fractionation
• Various acquisition and marketing assets

Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE: SUN); and the public partner interests and 39.7 million standard units of USA Compression Partners (NYSE: USAC).

Jefferies has a Buy rating with a $23 target price.

Pfizer

This pharma giant’s recovery story is gaining traction, with blockbuster non-COVID drugs delivering strong growth. The company is reportedly actively working on experimental GLP-1 treatments and has recently acquired assets, such as ecnoglutide (currently in development), to build a new obesity pipeline. Pfizer (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a dependable 6.97% dividend, which has increased annually for the past 16 years.

The company offers medicines and vaccines in various therapeutic areas, including:

• Cardiovascular, metabolic, and women’s health under the Premarin family and Eliquis brands
• Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
• Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands

Pfizer also provides medicines and vaccines in various therapeutic areas, such as:

• Pneumococcal disease, meningococcal disease, and tick-borne encephalitis
• COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
• Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Argus has a Buy rating and a $35 target price.

Realty Income

This real estate investment trust has paid monthly dividends consistently for years. Top-rated Realty Income (NYSE:O) owns over 15,500 properties with a 98.9% occupancy rate across 1,761 tenants in 92 industries, many in strong categories like grocery stores and dollar stores. Occupancy has never fallen below 96.6% this century, even during the Great Recession and the COVID-19 pandemic. With a 5% dividend yield, this is an ideal stock for growth and income investors seeking a safer contrarian idea for the rest of 2026. Realty Income is an S&P 500 company that acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.

It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries. Widely considered the gold standard of monthly dividend stocks, Realty Income has been paying dividends since 1969. It has paid 667 consecutive monthly dividends as of early 2026 and increased its dividend 132 times since its 1994 IPO.

The company owns or holds interests in approximately 15,621 properties in all 50 states:

• United Kingdom
• France
• Germany
• Ireland
• Italy
• Portugal
• Spain

With clients operating in 89 industries, its property types include retail, industrial, gaming, and other categories such as agriculture and office.

Its primary industry concentrations include:

• Grocery stores
• Convenience stores
• Dollar stores
• Drug stores
• Home improvement stores
• Restaurants
• Quick service

UBS has a Buy rating with a $72 target price.

VICI Properties

Vici Properties (NYSE: VICI) is a real estate investment trust based in New York City that specializes in casino and entertainment properties, paying a stellar dividend yield of 6.67%. This is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors seeking gaming exposure and a substantial dividend. It is an S&P 500 experiential REIT with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:

• Caesars Palace Las Vegas
• MGM Grand
• The Venetian Resort Las Vegas

Long-term master leases protect the company, with roughly 40 years remaining, and it just reported 4.5% adjusted funds from operations (AFFO) per share growth while raising 2026 guidance. It carries an investment-grade credit rating and an AFFO payout ratio of around 74%.

VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms, as well as over 500 restaurants, bars, nightclubs, and sportsbooks. Gaming revenue has proven remarkably resilient in recent downturns, and its triple-net lease structure means it collects rent regardless of tenant profitability swings.

Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under these long-term, triple-net lease agreements.

VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:

• Bowlero
• Cabot
• Canyon Ranch
• Chelsea Piers
• Great Wolf Resorts
• Homefield
• Kalahari Resorts

VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.

The Bank of America price target is $34.

The post Boomers Are Buying 5 Quality High-Yield Stocks at Big Discounts Hand Over Fist appeared first on 24/7 Wall St..

D-Wave Quantum (NYSE:QBTS) shares are up 7% to $19.29 in Monday morning trading after the company announced an expanded agreement with AT&T (NYSE:T) to deploy its annealing quantum systems across network operations.

The catalyst is company-specific, yet the reaction is sector-wide. D-Wave Quantum stock is leading the tape by name recognition, but the sympathy names are actually outrunning it. IonQ (NYSE:IONQ) shares are up 12% to $36.67, Rigetti Computing (NASDAQ:RGTI) stock is up 12% to $15.88, and Quantum Computing (NASDAQ:QUBT) shares are up 8% to $8.06.

The Defiance Quantum ETF (NYSEARCA:QTUM) is up 1% to $141.12, a milder move that reflects its broader compute exposure. Today’s rally comes inside a sharp drawdown for the pure-play names, giving traders a bounce within a longer-term drawdown.

Expanded AT&T Deal Fuels the Rally

D-Wave and AT&T signed an expanded agreement covering network operations, with an early application cutting a network optimization workload from about one hour to under 15 seconds, a 240x speedup using D-Wave’s annealing technology. AT&T plans to extend the work to outage detection, technician routing, network build planning, and traffic management.

AT&T is also evaluating D-Wave’s forthcoming gate-model systems for quantum security and communications. This is a concrete enterprise deployment tied to hard metrics, which is the piece the sector has been missing.

Benchmark added fuel by initiating D-Wave Quantum stock at Buy with a $30 price target. CEO Alan Baratz has framed AT&T’s expansion as evidence that annealing is moving from proof-of-concept into production workloads.

Rigetti Gets Its Own HPE Catalyst

Rigetti Computing shares are running with a second, name-specific catalyst. The company is expanding its collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center to build “TangleLab,” a hybrid quantum-classical supercomputing testbed funded by a $5 million National Science Foundation grant.

Rigetti will deliver a 9-qubit Novera quantum system integrated with classical high-performance computing. Construction is expected to begin September 1 at PSC’s new data center, with full operations expected in 2027. That timeline underlines both the opportunity and the wait involved in this thesis.

Peers Rally on Enterprise Adoption Sentiment

The read-through is straightforward. One credible enterprise deal is lifting the entire complex on adoption sentiment, and the sympathy names are outrunning the actual beneficiary. That’s classic thematic momentum trading.

The bounce comes inside deep drawdowns. D-Wave Quantum stock is down 27% year to date, IonQ stock is down 16% year to date, Rigetti Computing stock is down 29% year to date, and Quantum Computing stock is down 22% year to date. The Defiance Quantum ETF, which spreads exposure across broader compute names, remains up 29% year to date.

Bull Case, Bear Case, and What to Watch

The bull case rests on real customer traction. AT&T’s 240x speedup is a hard number, Benchmark’s Buy rating gives sell-side cover, and Rigetti’s NSF-funded HPE testbed shows federal research dollars flowing into hybrid architectures. D-Wave’s own $588.4 million cash position and $33.4 million in bookings from Q1 FY2026 support a runway argument.

The bear case is the valuation and the wait. D-Wave stock carries a price-to-sales ratio of 482.56 against TTM revenue of $12.44 million. TangleLab doesn’t reach full operations until 2027, and prediction markets currently price only a 25.5% probability that the U.S. federal government takes an equity stake in IonQ by year-end 2026.

Investors sizing their exposure here can keep their positions modest given a beta of 2.1 on D-Wave stock and the QTUM ETF’s narrow thematic concentration. The next cues are whether today’s gains hold into the close and whether other carriers follow AT&T’s lead with their own commercial announcements.

The post D-Wave Quantum Rises 7% on Expanded AT&T Deal, Lifting IonQ, Rigetti, Quantum Computing Inc. appeared first on 24/7 Wall St..

While it remains a mystery exactly why certain companies are removed from the venerable Dow Jones Industrial Average, even after years on the legacy index, we decided to ask Anthropic’s Claude chatbot for an answer on how those decisions are made. These were the results we got:

S&P Dow Jones Indices manages the Dow Jones Industrial Average, and changes to its composition are determined by an index committee—not by any fixed formula or automatic screening process. This is a key difference from many other indices (like the S&P 500), which use largely rules-based, quantitative criteria for additions and removals.

Who decides:

The S&P Dow Jones Indices Averages Committee, made up of full-time S&P Dow Jones Indices employees (analysts and economists), meets periodically and can also convene on an as-needed basis when a change seems warranted. The committee’s decisions are essentially editorial judgment calls rather than mechanical rule-following.

Criteria/factors considered for removal:

Since there’s no strict quantitative threshold, the committee weighs a mix of factors, including:

• Reputation decline — A company falling out of favor, facing major controversy, or losing standing as a leading representative of American industry.
• Slower growth or shrinking relevance — A company no longer reflecting the sector or economy it’s meant to represent.
• Sector balance — The committee tries to maintain reasonable representation across major sectors of the economy. If a sector becomes overrepresented or underrepresented, a swap may follow.
• Stock price distortions — Because the DJIA is price-weighted (not market-cap weighted), a stock with an unusually high or low price can distort the index’s calculations. Extreme price divergence, or a stock split that significantly changes a company’s weighting, can be a trigger for a change.
• Corporate actions — Mergers, acquisitions, bankruptcy, or a company being acquired can force removal, since the company effectively stops existing as an independent public entity.
• Overall fit — Whether the company remains a widely held, financially sound, and historically significant “blue chip” that meaningfully represents the U.S. economy.

When a company is removed, it’s simultaneously replaced by another company chosen to maintain balance across the 30-stock index. Because these decisions are subjective and infrequent, they tend to draw significant market attention when announced, and the S&P Dow Jones Indices typically announces changes a few days before they take effect.

With all that in mind, we decided to screen the stocks that had been removed over the past few decades and see whether the committee of analysts and economists is making the right removal decisions. Interestingly, some of the companies that were kicked out have soared and, in many cases, continued to pay big, dependable dividends. One thing we did note is that, over the past decade, technology companies have been replacing the stocks they remove.

Here are five dividend-paying giants that were all removed from the Dow.

Altria

Altria (NYSE: MO) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This tobacco stock offers value investors a solid entry point and a 5.66% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Kiplinger notes that after it was removed in 2008, shareholders who held through the transition saw their shares surge by more than 150% in the years following, excluding dividends.

The company primarily sells cigarettes under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 57th consecutive dividend increase.

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring process while maintaining a solid dividend of 5.06%. Thirteen analysts have given the stock a Buy rating, indicating broad Wall Street support.

It was removed from the index in 2015 to clear space for Apple (NASDAQ: AAPL). AT&T was a long-time Dividend Aristocrat before structural corporate changes and spinoffs altered its payout strategy.

AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services. Through its company-owned stores, agents, and third-party retail stores, it sells:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

Exxon Mobil

Exxon Mobil (NYSE: XOM) manages an industry-leading portfolio of resources and is one of the world’s largest integrated fuels, lubricants, and chemical companies. Despite the rise in oil prices, investors still have an excellent entry point to secure a strong 2.66% dividend yield. Exxon is the world’s largest international integrated oil and gas company, exploring for and producing crude oil and natural gas in North and South America, Europe, Africa, Asia, and elsewhere.

The legacy energy behemoth was removed in August 2020 after a 92-year run to make room for Salesforce (NYSE: CRM). Despite its removal, Exxon continued to raise its dividend payout annually and has delivered strong total returns for investors.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as specialty products. Additionally, the company transports and sells crude oil, natural gas, and petroleum products.

Top Wall Street analysts expect the company to remain a key beneficiary in a higher oil price environment, and most remain optimistic about the company’s sharp positive inflection in capital allocation strategy. The upstream portfolio offers leverage to a further demand recovery, and Exxon offers greater Downstream/Chemicals exposure than its peers.

Exxon completed its purchase of oil shale giant Pioneer Natural Resources in 2024 in an all-stock transaction valued at $59.5 billion. The deal created the largest U.S. oilfield producer and guarantees a decade of low-cost production.

International Paper

With a rich 5.09% dividend and a product that remains in demand, this top stock is still incredibly attractive. International Paper (NYSE: IP) provides sustainable packaging solutions. The company produces renewable fiber-based packaging products and operates manufacturing facilities in North America, Latin America, Europe, and North Africa. Kiplinger said the company was kicked out of the Dow in April 2004, and that the stock rebounded by approximately 25% and delivered a total return of over 100% when dividends are factored in.

Its segments include:

• Packaging Solutions North America
• Packaging Solutions EMEA

The company’s products and services include Packaging, Packaging Services, and Recycling. It provides corrugated packaging, solid fiber, corrugated sheets, retail displays, bulk packaging, and more.

International Paper also offers related services such as design and fulfillment to support these solutions. It provides a range of packaging and display services, from design and testing to fulfillment, including structural and graphic design, printing, testing, mechanical assembly, and packaging.

The company offers recycling solutions and services to manage fiber recovery programs for retailers, grocers, e-commerce companies, distribution centers, manufacturers, and its own box plants.

Pfizer

Pfizer (NYSE: PFE) was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a major winner in the COVID-19 vaccine race, but has declined significantly as booster uptake has slowed. However, Pfizer’s recovery story is gaining traction, with blockbuster non-COVID drugs delivering strong growth and a potential GLP-1 product launch on the horizon. It pays a dependable 6.93% dividend, which has increased annually for the past 15 years.

Booted in the August 2020 reshuffle to accommodate Amgen (NASDAQ: AMGN), Pfizer remains a staple for income investors seeking pharmaceutical exposure.

Pfizer discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide in various therapeutic areas, including:

• Cardiovascular, metabolic, and women’s health under the Premarin family and Eliquis brands
• Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
• Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands

Pfizer also provides medicines and vaccines in other therapeutic areas, such as:

• Pneumococcal disease, meningococcal disease, and tick-borne encephalitis
• COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
• Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Pfizer anticipates full-year 2026 revenues to be in the range of $59.5 billion to $62.5 billion. This outlook reflects an expected $1.5 billion decline in COVID-19 product sales (forecasted at approximately $5.0 billion for 2026, compared to $6.5 billion in 2025), alongside an additional $1.5 billion headwind from upcoming drug patent expirations.

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Pre-Market Stock Futures:

Futures are trading lower as more big earnings excitement ran into rising oil prices and geopolitical worries. When the final bell rang on Wednesday, all of the major indices finished the day lower, except the Dow Jones Industrial Average, which essientially closed flat at 52,239. The other three indices closed lower, with the small-cap Russell 2000 taking the biggest hit, closing down 1% at 2,957. At the same time, the tech-heavy Nasdaq finished the session at 25,690, down 0.57%. The S&P 500 closed the day at 7,498, down just 0.14%. The big news after the close was the second-quarter earnings from technology giant Alphabet (NASDAQ: GOOGL), and while they blew past analysts’ estimates, the shares were under pressure in the after-market, and are trading lower this morning in the pre-market action.

Treasury Bonds:

The song remains the same in the Treasury complex, as yields were higher across the entire curve once again, and the same reasons for the weakness persist. Higher oil prices are fueling worries about a resurgence of inflation, which took a summer holiday in June and looks set to return when the July inflation numbers come out in the month. The 30-year long bond closed the session at 5.15%, while the ten-year note closed at 4.66%. BTIG pointed out yesterday that 4.65% was a key area for the benchmark bond, and a “decisive close above that level could trigger a move higher”. Investors looking to buy the 10-year should focus on the 4.75% level. 

Oil and Gas:

In what is becoming a daily story, oil prices moved higher once again. Despite assurances from Secretary of State Rubio that tankers will be able to pass, buyers continue to launch bullish energy bets. When the dust settled on Wednesday, Brent Crude was up 3.05% at $93.79, while West Texas Intermediate finished the day at $86.44, higher by 2.49%. Natural gas joined in, and was last seen at $2.95, up 2.79%. 

Gold:

Geopolitical worries and rising yields were all it took to keep precious metals on their recent upward trend, where prices hit a 2-week high on Wednesday. Some traders pointed to next week’s meeting of the Federal Reserve governors and said that some of the move higher is positioning ahead of it. Gold closed Wednesday’s session at $4,134, up 1.38%, while Silver closed at $59.62, up 1.68%.

Crypto:

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Thursday, July 23, 2026.  

Upgrades:

• Ameren (NYSE: AEE) was upgraded to Overweight from Sector Weight at KeryBanc, with a $122 target price.
• AT&T (NYSE: T) was upgraded to Outperform from Peer Perform at Wolfe Research, with a $29 target price.
• Duke Energy (NYSE: DUK) was raised to Overweight from Sector Weight at KeyBanc, with a $139 target price objective.
• JPMorgan Chase & Company (NYSE: JPM) was upgraded to Buy from Hold at Deutsche Bank, which moved the target price to $375 from $345.
• Verisk Analytics (NASDAQ: VRSK) was upgraded to Buy from Hold at Jefferies, which raised the target price on the shares to $235 from $192.

Downgrades:

• Pegasystems (NASDAQ: PEGA) was downgraded to Loop Capital, which slashed the target price to $25 from $55.
• PNC Financial Services Group (NYSE: PNC) was downgraded to Hold from Buy at Deutsche Bank, with a $265 price target.
• Northern Trust (NASDAQ: NTRS) was downgraded to Sector Perform from Outperform at RBC Capital, with a $178 target price.
• Norwegian Cruise Line Holdings (NYSE: NCLH) was downgraded to Hold from Buy at Truist Financial, with a $20 target price.
• Southern Company (NYSE: SO) was cut to Underweight from Sector Weight at KeyBanc, with a $79 target price.

Initiations:

• Applied Digital (NASDAQ: APLD) was initiated with an Equal Weight at Morgan Stanley, with a $36.50 target price.
• Autodesk (NASDAQ: ADSK) was initiated with a Buy rating at Guggenheim, with a $245 target price.
  
• Exxon Mobil (NYSE: XOM) was assumed with a Neutral rating at Piper Sandler, which has a $158 target for the integrated oil giant.
• LiveNation Entertainment (NYSE: LYV) was initiated with a Buy rating at BTIG, with a $215 target price.
• Tyler Technologies (NYSE: TYL) was started with a Buy rating at Guggenheim, which has a $440 target price for the stock.

The post Here Are Thursday’s Top Wall Street Analyst Research Calls: AT&T, Applied Digital, Autodesk, Duke Energy, Exxon Mobil, JPMorgan Chase & Company, Live Nation Entertainment, and More appeared first on 24/7 Wall St..

AT&T (NYSE: T) just posted its fifth consecutive earnings beat, with management accelerating buybacks to roughly $10 billion for the year.

Our 24/7 Wall St. price target for the next 12 months is $27.91, implying 21.81% upside from the current $22.91 quote. Confidence in this call is high at 90%, and the recommendation is a buy.

24/7 Wall St. Price Target Summary

A Record Quarter Sets the Stage

AT&T reported Q2 2026 adjusted EPS of $0.65 against a $0.5871 consensus, a 10.71% beat. Revenue of $31.56 billion came in 0.79% light of estimates but grew 2.3% year over year. Operating income climbed 7.45% and net income rose 11.96% to $5.04 billion. Subscriber trends were strong: 432,000 postpaid phone net adds, 367,000 fiber net adds, and postpaid phone churn of just 0.86%.

Shares are up 6.21% over the past week and 4.04% over one month, though T remains down 5.76% year to date. The stock sits well below its 52-week high of $28.75 and above the $19.63 low.

The Case for $30 and Above

The bull scenario points to $30.20, a 31.8% total return. Advanced Connectivity service revenue is up 5.1% with operating income surging 20.3% to $7.34 billion. Fiber locations reached 38.6 million, tracking a 40 million year-end target and 60 million by 2030. Fixed wireless subscribers jumped 77.4% to 2.611 million.

CEO John Stankey told investors, “We are accelerating the pace of our planned share repurchases this year to approximately $10 billion, reflecting our confidence in our market position.” Combined with $45 billion+ in total shareholder returns targeted through 2028, this supports a re-rating toward the $29.03 analyst consensus and beyond.

The Risks Worth Watching

The bear scenario lands at $24.84. Legacy copper revenue fell 25.9%, net debt to EBITDA of 2.68x exceeds the 2.5x target, and interest expense rose 13.8%.

Regulatory delays on the pending EchoStar spectrum deal could weigh on sentiment. Bulls counter that capex jumped 16.4% to $5.70 billion to fund fiber and spectrum investments driving out-year free cash flow to $21 billion+ by 2028.

How AT&T Compares to Verizon and T-Mobile

Verizon (NYSE: VZ) trades at a forward P/E of 9x with a 6.36% dividend yield and an analyst target of $51.12. AT&T’s forward P/E of 10x is slightly richer, but T’s fiber footprint and stronger EPS growth trajectory justify the premium.

T-Mobile US (NASDAQ: TMUS) trades at a forward P/E of 19x with an analyst target of $252.73, reflecting faster subscriber growth. Against that peer, AT&T’s implied 12x forward multiple at our target leaves substantial room, making our 24/7 Wall St. price target look conservative.

Our Bottom Line

The 24/7 Wall St. price target of $27.91 and buy rating, backed by 90% confidence, reflects a business generating record profits at an attractive multiple. The setup remains constructive so long as the fiber build stays on pace toward 40 million locations by year-end.

The thesis weakens if net debt to EBITDA drifts further above 2.5x or the EchoStar spectrum deal stalls. On balance, the risk-reward at $22.91 skews positive.

These projections assume AT&T executes on its 60 million+ fiber location target by 2030 and its double-digit EPS CAGR guidance holds. Upside or downside could come from EchoStar spectrum integration, copper decommissioning by 2029, or interest rate shifts affecting the $144 billion debt load.

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AT&T Chairman and CEO John Stankey appeared on a Wednesday, July 22, CNBC interview tied to the company’s Q2 earnings call to push back against the narrative that satellite operators like SpaceX’s Starlink pose an existential threat to legacy telecom carriers.

He believes that decades of terrestrial infrastructure investment, combined with a fiber-plus-wireless convergence strategy, have built a moat that a satellite entrant cannot economically replicate.

AT&T Beats Earnings as Fiber and Wireless Add 1 Million Accounts

AT&T (NYSE:T) delivered adjusted EPS of $0.65 against a $0.5871 consensus, a 10.71% beat and the company’s fifth consecutive quarterly earnings beat. Revenue reached $31.558 billion, up 2.3% year over year, slightly below the $31.81 billion estimate. Net income climbed 11.96% to $5.038 billion.

Stankey cited over a million new strategic accounts, the most in three years, alongside nearly 370,000 new fiber additions and 430,000 postpaid voice additions. Fixed wireless subscribers via AT&T Internet Air grew 77.4% year over year to 2.611 million connections, and consumer wireline broadband revenue rose 27.3% to $2.926 billion. Full-year guidance was reiterated at $2.25 to $2.35 adjusted EPS, with EBITDA and EPS lifted to the upper end of the range.

AT&T’s CEO Says Starlink Cannot Replicate Its Infrastructure Moat

On the product itself, Stankey said: “We have the best broadband product that’s out there that’s built on a foundation of fiber. Our wireless business gets stronger and stronger. We bolstered the performance of that business with some really important and strategic spectrum acquisitions.”

On Starlink’s positioning, he argued: “They’re coming to the game very late, after this industry has been established. They have to catch up with substantial amounts of infrastructure investment that’s been going on for decades inside hospitals, on university campuses, in stadiums, in tall buildings.” He added that AT&T “handles 98%+ of the traffic on a converged customer” already today, with partnerships expected to cover remaining edge cases by next year.

Rather than pursuing a wholesale Starlink deal, AT&T is co-buying satellite capacity through a JV consortium alongside T-Mobile and Verizon for coverage gaps. As Stankey framed it: “I don’t feel a need right now that I need to have a satellite partner as a main distribution vehicle for me, because I don’t think it addresses a part of the market that I can’t get to on my own.“

AT&T’s CEO Says Its Current Multiple Is Too Cheap

Stankey acknowledged the disconnect between operating momentum and share price: “I do believe our multiple right now is probably suppressed based on what this business is going to do and perform moving forward. When the cash shows up, eventually the valuation dynamic takes care of itself.“

The stock is up 55% over three years but down 16% over the past year. $T trades at a trailing P/E of 7 and a forward P/E of 9, with an EV/EBITDA of 5 and an average analyst price target of $29.03, slightly above the stock’s current price of $22.81.

AT&T is accelerating repurchases to approximately $10 billion in 2026, part of a $45+ billion capital return plan through 2028. Free cash flow is guided to $18 billion in 2026, $19 billion in 2027, and $21 billion in 2028. Fiber locations reached 38.6 million, targeting 40 million by year-end 2026 and 60 million by 2030.

Wall Street Still Sees Starlink and Cash Flow Risks

CEO Stankey’s confidence collides with skepticism from parts of the Street. Bernstein and Scotiabank have cut price targets citing Starlink competition, and TechStock² flagged that AT&T needs to generate $11.0 to $11.5 billion in free cash flow in the second half to hit guidance.

Jim Cramer has said he does not want to own AT&T or Verizon (NYSE:VZ) due to Starlink. Verizon is up 10.09% over the past year, having closed its Frontier fiber acquisition in January.

The next test will be whether AT&T can meet its second-half-of-the-year cash flow targets and convince investors that satellite competition does not threaten its long-term growth.

The post AT&T CEO Dismisses the Starlink Threat: “They’re Coming to the Game Very Late” appeared first on 24/7 Wall St..

Vanguard High Dividend Yield ETF (NYSEARCA:VYM) has become one of the largest income vehicles in the market, with $94.6 billion in net assets per its most recent NPORT filing. VYM tracks the FTSE High Dividend Yield Index, screening large-cap U.S. stocks with above-average forecast yields and weighting them by market cap. With the 10-year Treasury near 4.62%, the question is whether VYM’s distribution stream still earns its equity risk premium. The short answer: mostly yes, with two holdings worth watching.

How VYM Generates Income

VYM owns roughly 550 U.S. stocks and passes through their cash dividends, minus a thin expense ratio. There are no options, leverage, or bond exposure, so the distribution is only as safe as the underlying payouts. The index rebalances annually, pruning dividend-cutters and adding higher-yielders, giving the fund self-cleaning ability but no immunity to a bad quarter.

Concentration is meaningful at the top. Broadcom alone sits at about 8% of assets, followed by JPMorgan near 3%, Exxon near 3%, and Johnson & Johnson near 2%. The next tier includes Caterpillar, AbbVie, Bank of America, Home Depot, Chevron, and Cisco. That top ten drives the majority of VYM’s cash yield.

The Blue-Chip Core Is Doing Its Job

Johnson & Johnson (NYSE:JNJ) raised its quarterly payout from $1.30 to $1.34 in Q2 2026, extending its Dividend King streak. With trailing EPS of $8.63 against an annualized dividend near $5.36, coverage is comfortable, and management raised full-year adjusted EPS guidance despite biosimilar erosion in Stelara. This dividend would survive a recession.

Procter & Gamble (NYSE:PG) lifted its quarterly dividend to $1.0885, marking another consecutive annual raise. Free cash flow of roughly $3 billion a quarter easily funds the payout, with $6.84 in diluted TTM EPS supporting $4.23 in dividends.

Coca-Cola (NYSE:KO) raised its dividend to $0.53 for 2026, a 63-plus-year streak. Q1 free cash flow jumped 131.9% year over year, and management guides to about $12.2 billion in 2026 FCF. This payout faces no realistic near-term risk.

AbbVie (NYSE:ABBV) is more interesting. Humira revenue fell 38.6% to $688 million last quarter, but Skyrizi and Rinvoq now generate a combined $6.6 billion per quarter with strong double-digit growth. Full-year adjusted EPS guidance was raised to $14.08 to $14.28, giving roughly 2x coverage on the $6.92 annualized dividend. The GAAP payout ratio looks stressed because of IPR&D charges, but the cash story is fine. (For investors thinking about high-yield warning signs elsewhere in their portfolios, our dividend traps briefing is worth a look.)

Two Positions Worth Watching

AT&T (NYSE:T) has held its quarterly dividend at $0.2775 for four consecutive years, and the stock is down about 18% over the past year. Management guides to $18 billion or more in 2026 FCF, but net debt/EBITDA at 2.71x remains above the 2.5x target. The dividend is safe. Dividend growth is not.

American Electric Power (NASDAQ:AEP) nudged its quarterly payout to $0.95, but the story is a $78 billion five-year capex plan and a $2.6 billion equity offering to fund it. Data-center load growth supports the plan, but dilution keeps per-share dividend growth in the low single digits.

Total Return and Verdict

VYM has delivered a 21.6% total return over the past year and 76.6% over five years, so investors have not sacrificed capital appreciation for yield. The distribution is well-supported: the top holdings are Dividend Kings with strong free cash flow, and even weaker names can cover their current payouts. The realistic risk is stagnant dividend growth from a few holdings. VYM makes sense for investors who want a diversified, low-fee income stream backed by real cash earnings. Yield-chasers looking for higher headline payouts should look elsewhere, because VYM is built for durability.

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Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.

With the stock market on shaky ground, inflation roaring higher, and multiple worrisome geopolitical issues at play, no one wants to be the last one at the party should a 20% bear-market sell-off occur. Smart investors are already rotating out of artificial intelligence and data center memory trades into safer areas. We decided to screen our 24/7 Wall St. research database, looking for quality stocks trading at or near 52-week lows. We were not looking for tech burnouts that could surprise with a dead-cat bounce, but for quality large-cap stocks that, for various reasons, are trading at their lowest levels, in some cases for years. All are rated Buy by the top Wall Street firms we cover.

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring while maintaining a solid dividend of 5.42%. Twelve analysts have given the stock a Buy rating, indicating broad support from Wall Street.

AT&T recently hit a fresh 52-week low, making it one of the higher-yielding income plays for investors who are comfortable trading slower growth for dependable cash flow. Worries over competition from Starlink have weighed on the shares, but at current levels, it looks like a bargain.

The company provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

Through its company-owned stores, agents, and third-party retail stores, it sells:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• SecuT
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a $33 price target for the stock.

General Mills

With products that never go out of style and a strong 6.49% dividend yield, this is a rebound story that will reward patient investors. General Mills (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods, and trades at a cheap 10.4 times estimated 2026 earnings. Its segments include:

• North America Retail
• International
• North America Pet
• North America Foodservice

The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains; convenience stores; and e-commerce grocery providers.

The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.

The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.

The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.

Piper Sandler has an Overweight rating and a $41 target price.

McDonald’s

McDonald’s (NYSE: MCD) is a solid pick whether the economy heads south or north, and it’s among the safest large-cap restaurant ideas. The legacy fast-food heavyweight is approaching the 50-year mark of dividend increases and is widely seen as a likely entrant to the Dividend Kings, given its consistent dividend growth and durable business model. And it pays a solid 2.59% dividend yield.

The company operates and franchises McDonald’s restaurants in the United States and internationally. Approximately 95% of McDonald’s roughly 13,500 U.S. restaurants are owned and operated by independent business owners. The company’s restaurants offer:

• Hamburgers and cheeseburgers
• Chicken sandwiches and nuggets
• Fries
• Salads
• Shakes
• Frozen desserts
• Sundaes
• Soft serve cones
• Bakery items
• Soft drinks
• Coffee
• Muffins
• Sausages
• Biscuit and bagel sandwiches
• Oatmeal
• Hash browns
• Breakfast burritos
• Hotcakes

Wells Fargo has an Overweight rating with a $320 target price for the shares.

PepsiCo

This top consumer staples stock reported solid second-quarter earnings and will continue to supply all the goods for summer picnics and parties. PepsiCo (NYSE: PEP) is a global food and beverage company with a solid 3.95% dividend yield. Activist investor Elliott Investment Management recently took a $4 billion stake in PepsiCo, revealing a strategy to unlock value within the company’s iconic brand by focusing on core strengths, such as innovation and brand marketing, rather than its capital-intensive bottling operations. This move caused PepsiCo’s stock to surge, with Elliott believing the company could see over 50% upside if its proposed strategic changes were implemented. However, these changes would involve a long-term transformation.

Its Frito-Lay North America segment offers:

• Lays and Ruffles potato chips
• Doritos, Tostitos, and Santitas tortilla chips
• Cheetos cheese-flavored snacks, branded dips
• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker Oatmeal
• Grits
• Rice cakes
• Natural granola and oat squares
• Pearl Milling mixes and syrups
• Quaker Chewy granola bars
• Cap’n Crunch cereal
• Life cereal
• Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi
• Gatorade
• Mountain Dew
• Diet Pepsi
• Aquafina
• Diet Mountain Dew
• Tropicana Pure Premium
• Sierra Mist
• Mug

Goldman Sachs has a Buy rating with a $183 target price.

Unilever

This is a great consumer staples company for more conservative accounts to consider. Unilever (NYSE: UL) is a fast-moving consumer goods company operating across Asia Pacific, Africa, the Americas, and Europe. Unilever is trading near its 52-week lows with an attractive valuation. It currently yields 3.65% and trades at a P/E of just over 19, making it a compelling income stock at its depressed price.

It operates through five segments:

• Beauty & Wellbeing
• Personal Care
• Home Care
• Foods
• Ice Cream

The Beauty & Wellbeing segment sells hair care products, such as shampoo, conditioner, and styling products; skin care products, including face, hand, and body moisturizers; and prestige beauty and health & wellbeing products, including vitamins, minerals, and supplements.

The Personal Care segment offers a range of skin-cleansing products, including soaps and shower gels, deodorants, and oral care products such as toothpaste, toothbrushes, and mouthwash. The Home Care segment sells fabric care products, including washing powders and liquids, rinse conditioners, and fabric enhancers, as well as home and hygiene products.

The Foods segment offers cooking aids and mini meals, including soups, bouillons, and seasonings, as well as condiments such as mayonnaise and ketchup, and food solutions. The Ice Cream segment offers a range of ice cream products, including both in-home and out-of-home options.

The company provides its products under these well-known brands:

• AXE
• Ben & Jerry’s
• Clear
• Cif
• Closeup
• Comfort
• Cornetto
• Dermalogica
• Domestos
• Dove
• Dove Men+Care
• Hellmann’s
• Horlicks
• Knorr
• LUX
• Lifebuoy
• Liquid I.V.
• Magnum
• Nutrafol
• OMO
• Pond’s
• Paula’s Choice
• Pepsodent
• Radiant
• Rexona
• Sunlight
• Sunsilk
• Surf
• TRESemmé
• Vaseline
• Wall’s
• Breyers
• Yasso

DZ Bank has a Strong Buy rating and a $70 target price.

The post Wall Street Is Sleeping on These 5 Quality Dividend Stocks: Grab Them Now Before It’s Too Late appeared first on 24/7 Wall St..

Jim Cramer used his CNBC Mad Dash segment on Monday to warn viewers away from major telecom names after Bernstein published a research note tying valuation risk directly to SpaceX’s Starlink. “This is a Bernstein piece today. Cuts price target, T-Mobile, AT&T, Verizon, Comcast, Charter all because of Space Exploration,” Cramer said, framing the report as a sector-wide reset on how satellite broadband could reshape the competitive map.

The central debate is whether Starlink can expand beyond rural areas and become a serious broadband competitor in the suburbs. Longtime telecom analyst Craig Moffett argues the suburban leap will not happen. Bernstein cut price targets across the group anyway, and Cramer’s takeaway was blunt: “I don’t want to own AT&T or Verizon.”

AT&T’s Improving Business Cannot Shake the Starlink Threat

AT&T (NYSE:T) has borne the brunt of the sentiment shift. Shares are down 7.77% over the past month and 19.91% over the past year, with a market cap around $149.1 billion. That drawdown comes despite operational momentum.

AT&T reported Q1 2026 adjusted EPS of $0.57 on revenue of $31.51 billion, with 584,000 internet net adds and advanced home internet revenue up 27.3% to $2.80 billion after closing the Lumen Mass Markets fiber deal on February 2, 2026. CEO John Stankey framed the quarter as “our best first quarter ever for Advanced Connectivity internet customer net additions.”

Verizon’s Turnaround Is Colliding With a New Competitive Risk

Verizon (NYSE:VZ) shares slipped 8.78% in the past month, though the stock remains up 8.61% year to date. New CEO Dan Schulman delivered the first positive Q1 postpaid phone net adds since 2013, and the closed acquisition of Frontier pushed fiber connections up 41.9% year over year to roughly 10.8 million.

Comcast and Charter Have the Most to Lose From Starlink

Comcast (NASDAQ:CMCSA) is down 21.24% over the past year. Domestic broadband losses narrowed to 65,000 in Q1 2026 from 183,000 a year earlier, and wireless lines reached 9.7 million, with wireless revenue up 15.0%. Morgan Stanley recently initiated at Equal Weight, calling broadband competition a “structural overhang.”

Charter Communications (NASDAQ:CHTR) is the most exposed name in the group. Shares have fallen 67.45% over the past year and 37.37% year to date. Internet customer losses accelerated to 120,000 in Q1 2026 from 59,000 a year earlier, and Q1 EPS of $9.17 missed the $10.08 consensus. Charter carries roughly $94.3 billion in principal debt while spending toward a 2027 network evolution completion.

T-Mobile Is Both a Starlink Partner and a Potential Victim

T-Mobile US (NASDAQ:TMUS) sits in a strange spot on this note. The company already partners with SpaceX on direct-to-cell service, which implies Starlink won’t be a pure competitive threat. Shares are down 16.23% over the past year but rallied 5.68% last week. The stock closed at $188.41 on Monday, while analysts still carry a target price of $254.85 with 9 Strong Buys, 15 Buys, and no Sells. Q4 2025 EPS of $1.88 missed the $2.42 consensus, and 2026 core adjusted EBITDA guidance sits at $37.0 to $37.5 billion.

Key Takeaways

The Bernstein call rests on whether Starlink’s economics stay stuck in rural geographies, where cable and fiber are thin, or whether capacity permits meaningful suburban share gains. Moffett argues Starlink won’t expand meaningfully into the suburbs, while Cramer is worried about traditional telecoms.

Q2 earnings reports from AT&T and Verizon in late July will be a test of whether operational execution can outrun the satellite narrative.

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CNBC’s America’s Top States for Business 2026, the 20th edition of the annual study by Scott Cohn published July 9, 2026, scored all 50 states across 138 metrics in 10 weighted categories. For the first time in the study’s history, Ohio claimed the overall top spot. North Carolina finished second overall but ranked first in the all-important Economy category. Texas ranked second in Economy and fourth overall, held back by a 49th-place Quality of Life score. The sections below focus on the Economy sub-ranking, where the contest was effectively a two-state race.

Ohio Takes the Overall Crown

Ohio is a state, not a publicly traded company, but its ascent in the rankings is worth framing before diving into the economy leaders. Ohio climbed from fifth in 2025 to first in 2026, capping five straight years of improvement and a rise of 33 spots since 2010, when the Buckeye State ranked 34th. The win rested on two pillars: the best infrastructure score in the nation and the lowest cost of doing business among all 50 states. More than 143 million people live within a day’s drive of Ohio, a logistics advantage no other state can match. Ohio also holds a Triple-A bond rating from all three major credit agencies, a status it first achieved in 2023, reflecting a decade-plus of fiscal discipline.

Infrastructure displaced Economy as the top-weighted category in 2026, accounting for 17.6% of each state’s total score. CNBC also added ease of permitting as a brand-new metric this year, a direct response to corporate frustration with regulatory delays on data center and advanced manufacturing projects.

North Carolina: Best Economy in the Nation

North Carolina ranked first in the Economy category despite its legislature failing to pass a budget for more than a year. The state ran on its prior spending plan until Governor Josh Stein signed the new budget in early July 2026. The economic numbers underneath that political dysfunction are hard to argue with: 2025 GDP of $682.4 billion, up 2.7% from the prior year, a Moody’s Aaa credit rating, $5.26 billion in foreign direct investment in 2024, and a net gain of 84,100 residents in 2025, the most of any state in the country. The Tar Heel State has now finished first or second in CNBC’s overall rankings for six consecutive years, missing a repeat overall win in 2026 by just nine points out of a possible 2,500.

The corporate anchors are defensive and cash-generative. Bank of America (NYSE:BAC), Duke Energy, and Labcorp are all headquartered in Charlotte or the Research Triangle. The one visible soft spot is federal dependency: nearly 40% of state spending comes from federal funding, the 12th-highest exposure in the country. That reliance takes on added weight as Washington trims its budget footprint. North Carolina ranked 34th for Quality of Life and 35th for Cost of Living, a sign that the state’s economic success has pushed costs higher for everyday residents even as it continues drawing business investment.

Texas: The Economic Juggernaut With a Housing Problem

CNBC called Texas “an economic juggernaut year after year.” The state posted 2025 real GDP of $2.28 trillion, up 2.5% from 2024, and pulled in $22.1 billion in foreign direct investment during the same period, the largest haul of any top-10 state and roughly four times North Carolina’s total. Texas leads the nation in workforce quality, ranking first in that category, and second in both Economy and Access to Capital. The headquarters roster keeps growing: Oracle (NYSE:ORCL) in Austin, Tesla (NASDAQ:TSLA) at Gigafactory Texas, and AT&T (NYSE:T) in Dallas. On June 16, 2026, NVIDIA CEO Jensen Huang attended the groundbreaking of Coherent’s expanded semiconductor manufacturing campus in Sherman, Texas, as part of NVIDIA’s $2 billion investment partnership with the optical networking company, adding another marquee connection to the state’s growing industrial corridor.

The housing market tells a different story. Texas prices posted year-over-year declines for 12 consecutive months through mid-2026, according to the Texas Real Estate Research Center, as inventory climbed well above balanced-market norms and homes sat on the market for an average of 82 days. Austin and Dallas-Fort Worth have seen the sharpest corrections, though the Texas Real Estate Research Center characterizes the overall dynamic as normalization rather than distress. Tariff exposure adds another layer of risk: international goods trade equals 29.3% of Texas’s nominal GDP, the highest share among top-10 economy states, at roughly $850 billion still subject to contested duties. Quality of Life ranked 49th out of 50, which is the primary reason Texas finished fourth overall despite holding the second-ranked economy.

The Actual Top 10 Overall

The full CNBC overall rankings tell a story quite different from the economy sub-ranking. Virginia finished third overall, though federal budget and personnel cuts pushed its Economy score down to 23rd from 14th the year before. Minnesota rounded out the top five, earning fourth place in Quality of Life thanks to strong healthcare, worker protections, and inclusive state laws, even as its high taxes weighed on business-cost scores. Michigan came in sixth, Georgia seventh, Florida eighth, Tennessee ninth, and Indiana tenth. California, New York, and Washington all fell outside the top 10 in the overall study, even though California holds the nation’s largest GDP. The most improved state award went to Arkansas, which rose 13 spots to 28th overall.

What to Do With It

The macro backdrop is more supportive than a year ago. BofA Global Research’s December 2025 outlook projected US real GDP growth of 2.4% on a fourth-quarter-over-fourth-quarter basis for 2026, above consensus at the time of publication. A year earlier, more than half of the economists surveyed in the CNBC Fed Survey had predicted a recession that never materialized. The shift of Infrastructure to the top-weighted category in 2026 reflects corporate demand for power, water, and shovel-ready sites to support data centers and advanced manufacturing plants.

For businesses weighing a state, Texas remains the strongest pure economic case: a $2.28 trillion GDP, Aaa credit, no state income tax, and the most foreign investment of any state in the study. For real estate owners in Texas, the current buyer’s market and persistent price softness mark a meaningful shift from the prior decade’s pattern. For anyone considering relocation, North Carolina offers the top-ranked economy in the country, an Aaa credit rating, and the largest net in-migration of any state. Ohio’s first-ever overall win signals that infrastructure capacity and business-cost discipline, not just GDP size, are now the decisive variables in where companies choose to put down roots.

Editor’s note: This pass corrects the description of the NVIDIA-related Sherman, Texas groundbreaking: the facility belongs to Coherent, an optical semiconductor manufacturer, with Jensen Huang attending the June 16, 2026 ceremony as part of NVIDIA’s $2 billion investment partnership. Texas’s 2025 real GDP figure has been updated to $2.28 trillion per Bureau of Economic Analysis data, and Ohio’s Triple-A bond rating is noted as first achieved in 2023.

The post New Study Reveals Strongest State Economies, Only 1 State Was Better Than Texas appeared first on 24/7 Wall St..

Shares of Vodafone Group (NASDAQ:VOD) are up 12.7% in Friday midday trading, changing hands near $14.74 after opening from a prior close of $13.08. The surge comes on confirmed news of a major shareholder change and marks the ADR’s sharpest single-day gain in months.

Niel Family’s Vega Takes 16.2% Stake From e&

The catalyst is a governance shake-up. French telecoms billionaire Xavier Niel, via his acquisition vehicle Vega, is buying Emirates Telecommunications Group’s (e&) entire 16.2% shareholding in Vodafone for £4.4 billion. The purchase makes Niel the largest shareholder in Vodafone, with Vega positioning the position as a long-term, strategic minority holding.

Vodafone confirmed the transaction in a same-day response, noting that the relationship agreement between Vodafone and e& has been terminated and that Hatem Dowidar has resigned from Vodafone’s Board of Directors. Niel has also signaled he intends to engage with the UK government and pointed to his track record as a minority investor in listed telecom operators. Sentiment across news coverage skewed bullish, with Proactive Investors carrying a bullish ticker sentiment score of 0.4 on VOD.

FY26 results filed May 12, 2026 showed organic service revenue growth of 5.4%, Adjusted EBITDAaL of $13.23 billion, and a 2.5% dividend increase. CEO Margherita Della Valle said Vodafone is now “a simpler company with a stronger growth outlook” after three years of restructuring, which frames why a strategic minority investor would step in at this level.

Peers Barely Move as VOD Trades on Its Own Story

Large-cap US telecom peers are trading mostly flat, reinforcing that today’s action is company-specific. T-Mobile US (NASDAQ:TMUS) is up 2% near $185.90, Verizon (NYSE:VZ) is essentially flat, up 0.17% at $42.31, and AT&T (NYSE:T) is up 0.5% at $21.15. All three peers are trailing VOD’s double-digit jump by a wide margin.

Zooming out, VOD had been under pressure heading into today. The stock was down 11% over the prior month and roughly flat year to date before Friday. It still trades below its 52-week high of $16.30, and the ADR carries a price-to-book ratio of 0.5 and a forward P/E of 29. A new anchor shareholder of Niel’s profile arriving after that pullback is why the stock is reacting so sharply. Options positioning had been light on downside, with a full-chain put/call ratio of 0.16, suggesting few traders were braced for a governance jolt in either direction.

What to Watch Next

Two forward events matter. Vodafone reports Q2 2026 results on July 27, 2026, before market open, giving investors their first look at how the VodafoneThree integration and Germany’s return to growth are tracking against FY27 guidance of €11.9 to €12.2 billion in Adjusted EBITDAaL. Before that, watch for any UK government commentary on Niel’s stated intention to engage, along with follow-through disclosures on board composition after Dowidar’s departure. The final FY26 dividend of $0.0275 per share is scheduled to pay July 30, 2026, a separate cash event that could keep holders engaged into month-end. I would keep an eye on whether VOD holds above the $14.78 50-day moving average into the close, since reclaiming that level would be the cleanest technical confirmation of today’s move.

The post Vodafone Group Spikes 13%: Here’s the Story appeared first on 24/7 Wall St..

Income investors watching the calendar have a narrow window this week. Three of the market’s most widely held high-yield names are about to lock their next payment rosters, and the buy-by deadlines are close enough that a delayed brokerage order could push readers a full quarter down the line before the next check clears. The trio in focus, Verizon (NYSE:VZ), AT&T (NYSE:T), and Pfizer (NYSE:PFE), pair yields above the broad market average with coverage profiles that separate them from typical yield traps.

Here is the at-a-glance calendar, followed by a coverage read for each name using the metric that actually matters for its business model.

The Buy-By Calendar

To qualify for any of these payments, shares must be owned by the day BEFORE the ex-dividend date, which for Verizon and AT&T means settling a trade by the close on Thursday, July 9th, 2026. (That’s tomorrow.) Pfizer offers a longer runway, with a buy-by date roughly two weeks out (July 23rd).

Verizon: Free Cash Flow Doing The Heavy Lifting

Verizon trades at $42.82 with a market cap of $177.83 billion, and the stock has slipped 6.13% over the past month, pushing the yield toward the top of its historical range. The quarterly payment of $0.7075 was raised from $0.69 earlier this year, extending a streak that Wells Fargo recently flagged as 21 consecutive years of dividend increases.

For a capital-heavy telecom, free cash flow is the right coverage lens. Management is guiding to free cash flow of $21.5 billion or more in 2026 alongside $3.0 billion-plus in share repurchases, comfortably above dividend commitments. Q1 2026 adjusted EPS came in at $1.28, up 7.6% year over year, on revenue of $34.44 billion. Leverage is the offset: net debt-to-EBITDA sits at 2.6x following the Frontier acquisition that closed January 20, 2026. At a forward multiple of 8, the market is already pricing in that debt load.

AT&T: A Fixed Payout Backed By Rising Cash

AT&T shares last changed hands at $21.27, down 22.53% over the past year. The dividend has held at $0.2775 per quarter for eight consecutive quarters, and management has publicly committed to maintaining that payout through 2028.

Coverage here also runs through free cash flow. Guidance calls for $18 billion-plus in FCF against the dividend plus $8 billion in planned 2026 buybacks, part of a $45 billion-plus shareholder-return program through 2028. Q1 2026 adjusted EPS of $0.57 rose 11.8% year over year, and the company added 584,000 internet subscribers alongside 294,000 postpaid phone net adds. Net debt-to-EBITDA of 2.71x is elevated but trending in the right direction. Wall Street’s average price target sits at $30.24, well above the current quote.

Pfizer: Earnings Coverage With A Patent-Cliff Overhang

Pfizer offers the fattest headline yield of the three at 7.07%, with shares at $24.22 after a 7.57% monthly pullback. For a large-cap pharma, coverage is best measured against adjusted EPS rather than free cash flow, given the lumpiness of R&D and legal outflows. Full-year 2026 guidance of $2.80 to $3.00 in adjusted EPS against an annual dividend of $1.72 leaves the payout ratio in a workable range, even after the company paid $2.4 billion in dividends in Q1 alone.

Growth is coming from the newer portfolio. Padcev rose 39%, Nurtec ODT/Vydura climbed 41%, and the recently launched or acquired basket grew 22% operationally. The pushback is COVID-related revenue rolling off (Comirnaty down 59%, Paxlovid down 63%) plus a $1.5 billion loss-of-exclusivity headwind this year.

What To Watch Next

All three names carry institutional ownership above 69%, which typically muffles the mechanical price drop that follows an ex-dividend date. Verizon and AT&T both offer forward multiples in the single digits (8x and 9x respectively), a rare combination alongside yields north of 5%. Pfizer, at a forward multiple of 8, prices in the patent-cliff drag, so the coverage read matters more than the headline yield. The clock is the shorter-term variable: miss the buy-by deadline, and the next opportunity is roughly three months out.

The post 3 High-Yield Dividends That Pay You Soon (But You Must Act Quickly) appeared first on 24/7 Wall St..

The S&P 500 keeps climbing, up nearly 9% year to date, and yet a handful of large-cap dividend payers are trading like the bull market forgot they exist. That is exactly where opportunity hides in July. If you have $1,000 to put to work, three NYSE-listed names stand out on valuation, cash flow, and payout durability. Each carries a forward earnings multiple well below the broader market, each throws off real income, and each has a specific catalyst that could re-rate the stock over the next 12 to 18 months.

The premise is simple. When investors crowd into AI and momentum, cash-generative businesses get orphaned. That is the setup here.

Pfizer (NYSE: PFE)

Pfizer (NYSE:PFE) is the cleanest “absurdly cheap” name on this list. Shares trade around $24 with a forward P/E of 8, roughly a third of the S&P 500’s multiple. The trailing dividend yield sits at 7.1%, backed by a 43-cent quarterly payout that has been paid consistently through 2026, with the next ex-dividend date on July 24, and payment on Sept. 1.

The bull case is that COVID revenue has already normalized and the growth engine is now new products. Q1 2026 revenue came in at $14.45 billion, up 5.4% year over year, with launched and acquired products growing 22% operationally. Padcev rose 39% and Nurtec ODT/Vydura jumped 41%. The Vyndamax patent settlement extending US exclusivity to June 2031 pushes out a major revenue cliff, and management reaffirmed FY2026 adjusted EPS guidance of $2.80 to $3.00. CEO Albert Bourla said Pfizer is “off to a strong start in 2026…positioned to lead” in oncology and obesity.

Risk: Legacy COVID franchises are still in free fall, with Comirnaty down 59% and Paxlovid down 63%, and management flagged a $1.5 billion loss-of-exclusivity headwind in 2026. Analysts still see upside, with a consensus target of $29.15.

CVS Health (NYSE: CVS)

CVS Health (NYSE:CVS) is a different kind of cheap: a turnaround that is already working, but that’s still priced like it isn’t. Shares changed hands at $104.81, up nearly 57% over the past year, yet the forward P/E is still only 14, well under the S&P 500. Against management’s raised FY2026 adjusted EPS guide of $7.30 to $7.50, that math looks fair even after the run.

Q1 2026 was the proof point. Revenue reached $100.43 billion, up 6.2% year over year, and adjusted EPS of $2.57 beat the $2.21 consensus by 16.47%. The Health Care Benefits segment, the one that scared investors two years ago, delivered adjusted operating income of $3.04B, up 52.6%, with the medical benefit ratio improving to 84.6% from 87.3%. Full-year revenue guidance was raised to at least $405B with operating cash flow of $9.5 billion or more. CEO David Joyner pointed to “strong execution across our enterprise”, serving nearly 185 million people.

Yield here is thinner at 2.54%, so this is more about earnings recovery than income. Risks include elevated medical cost trends, pharmacy reimbursement pressure, and the Omnicare Chapter 11 filing in September 2025. Still, 24 of 28 analysts rate CVS a Buy or a Strong Buy.

AT&T (NYSE: T)

AT&T (NYSE:T) is the pure income idea. At $21.24, the stock is down nearly 14% year to date, and that pullback has pushed the yield to 5.23% on the 27-cent quarterly payout that has held steady for at least eight consecutive quarters. The forward P/E of 9 is again a fraction of the market. The next ex-dividend date is July 10.

The story is convergence. Q1 2026 revenue was $31.51 billion, up 2.9%, with 584,000 internet net adds, the best first quarter ever, and 294,000 postpaid phone net adds at churn of 0.89%. Advanced home internet revenue climbed 27.3% to $2.80 billion. Management guided FY2026 adjusted EPS of $2.25 to $2.35, free cash flow of $18 billion or more, and committed to more than $45 billion in shareholder returns through 2028, including roughly $8 billion of buybacks in 2026. CEO John Stankey called it the “best first quarter ever for Advanced Connectivity internet customer net additions”.

Risk: The balance sheet. Total debt is $138.4 billion, and net leverage will rise toward 3.2x post-EchoStar. Reddit sentiment reflected the anxiety, with wallstreetbets activity turning bearish in late June (scores of 33–38) before neutralizing in early July. Analysts still see upside to $30.24.

The Setup for July

Three names, three flavors of cheap. Pfizer offers the highest yield and the biggest valuation gap. CVS offers the strongest earnings momentum against a still-modest multiple. AT&T offers durable free cash flow and a covered payout in a market that keeps paying up for growth. Split $1,000 across all three and you get income, optionality, and a starting valuation that requires very little to go right.

The post 3 Absurdly Cheap Dividend Stocks to Buy With $1,000 in July appeared first on 24/7 Wall St..

Retirement portfolios need beaten-down stocks with a survival plan, not just a low price tag. Before ranking three names, it helps to draw a sharp line between two conditions that are often confused.

Oversold is a technical condition. It means a stock has been sold hard and fast, its Relative Strength Index (RSI) is pinned below 40, and it trades near the low end of its recent range. Undervalued is a fundamental condition. The share price reflects a reasonable estimate of intrinsic worth, often shown in a low forward price-to-earnings ratio and analyst targets meaningfully above the current quote. The best retirement-fit setups live in the overlap. They are stocks that are both oversold and undervalued, backed by durable cash flow and (ideally) a dependable dividend.

All three names below meet that overlap test. Here we rank them by suitability for a retirement portfolio, weighting income durability, valuation discipline, and volatility. These three span software, consumer staples, and telecom. (Also check out three other stocks in the retirement portfolio sweet spot.)

3. Adobe (The Growth Wildcard)

Adobe (NASDAQ:ADBE) is the spiciest pick here. Shares have fallen 41.2% over the past year and 36.7% year to date, with the weekly RSI at 36.22. That checks the oversold box. On valuation, Adobe trades at a forward P/E of 9x, with a PEG ratio of 0.6. Its $272.48 consensus analyst target is well above the recent price of $221.54.

Operationally, Adobe is compounding. Q2 FY2026 delivered record revenue of $6.62 billion, up 13% year over year, non-GAAP EPS of $5.96 (a fifth consecutive beat), and AI-first ARR that tripled to more than $500 million. The catch for retirees: Adobe pays no dividend and carries a beta of 1.43. Great business, wrong risk profile for income-first portfolios, hence the third-place finish.

2. General Mills (Defensive Income Play)

General Mills (NYSE:GIS) is the textbook defensive name. The stock is down 28.4% over the past year, and touched an RSI low of 22.52 on May 15, 2026, with the most recent weekly reading at 46.40. Valuation is friendly: a forward P/E of 12x, a dividend yield of 6.49%, and a near-zero beta of −0.05.

Fundamentals are stabilizing. Fiscal Q4 2026 delivered revenue of $4.61 billion, up 1.2%, and adjusted EPS of $0.95 versus a $0.82 estimate, a 15.85% beat. Management guided FY2027 adjusted EPS to $3.00 to $3.20 and is targeting $3 billion in cumulative cost savings by FY2030. The $0.61 quarterly dividend was just declared. A low beta plus a 6.6% yield makes this a strong retirement fit, though category weakness and prior Pet-segment impairments keep it just shy of the top spot.

Income investors may also want to review the free 24/7 Wall St. report Dividend Traps as a due-diligence checklist.

1. AT&T (The Sweet-Spot Winner)

AT&T (NYSE:T) hits every box on the retirement checklist. Shares are down 25.8% over the past year and 15.1% year to date, with a weekly RSI of 35.17. That is textbook oversold. Valuation is genuinely cheap: a trailing P/E of 7x, a forward P/E of 9x, a dividend yield of 5.3%, and an analyst target of $30.02 against a recent quote of $21.09. A beta of 0.42 keeps portfolio drawdowns contained.

The operating story is quietly accelerating. Q1 2026 revenue was $31.51 billion, up 2.9%, and adjusted EPS came in at $0.57, up 11.8%. The company added 584,000 net internet subscribers with churn of 0.89%. Management reaffirmed FY2026 adjusted EPS of $2.25 to $2.35 and free cash flow of over $18 billion, with $8 billion in buybacks planned and the $0.2775 quarterly dividend. That combination of income durability, a cheap forward multiple, low beta, and improving fiber-plus-5G economics is exactly what a retirement investor wants from a beaten-down stock.

Tying It Back Together

The overlap of oversold and undervalued is where retirement capital does its best work, provided the business behind the discount is durable. Adobe is oversold and cheap, but the missing dividend and higher beta push it down the list. General Mills brings a fortress-grade yield and near-zero beta, ideal for capital preservation. AT&T carries the cleanest mix of technical washout, single-digit forward earnings multiple, committed dividend, and improving free cash flow. This makes it the top pick for retirement portfolios today. Size positions to your own income needs and time horizon.

The post Where Oversold Meets Undervalued: 3 Dividend and Growth Plays for Income Investors appeared first on 24/7 Wall St..

All the major Wall Street firms we cover here at 24/7 Wall St. have a list of the top stock picks for their institutional and retail clients to invest in. Typically, these are companies that analysts have a high level of conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have strong upside to the assigned price target and are assigned a Buy or Overweight rating, depending on the company providing the coverage. After a furious rally off the February lows and with all major indices trading at or near all-time highs, many investors are treading carefully as we start the third quarter of 2026. With earnings season right around the corner, we were very interested to see which stocks were on the July edition of J.P. Morgan’s Analyst Focus List. All will provide investors with steady passive income and have the potential to deliver solid total returns.

The research team at J.P. Morgan updates its U.S. Analyst Focus List monthly, as the company describes:

The U.S. Analyst Focus List is updated monthly. Names may be removed mid-month when a valuation target has been largely or wholly achieved, or the original rationale is no longer valid. New ideas can also be added mid-month. Analysts will publish the explanation for all mid-month changes in a research note.

We screened the July Analyst Focus List, and to our surprise, one of our favorite dividend stocks was added this month. We cover the new addition and found four more companies on the list that pay dependable dividends, and in some cases, big ones.

Why do we recommend J.P. Morgan’s Analyst Focus List stocks?

J.P. Morgan is one of the acknowledged leaders in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come.

EPR Properties

This real estate investment trust (REIT) invests in some of the most popular entertainment companies and is the newest addition to the J.P. Morgan Equity Analysts Focus List. EPR Properties (NYSE: EPR) is a leading experiential net-lease real estate investment trust specializing in select enduring experiential properties and pays a 6.02% dividend. EPR recently increased its monthly dividend by 5.1% and expects FFO per share growth of more than 5% in 2026, supporting continued dividend increases. After suspending its dividend during COVID, it has recovered with five consecutive years of increases. Its $6.9 billion property portfolio generates solid cash flow, and the monthly dividend of $0.31 per share is well-covered by funds from operations.

J.P. Morgan gave this brief reason for adding the shares: “High dividend yield >6% that we see as safe and growing, with earnings growth likely to be toward the top of the net-lease REIT peer group.”

The company operates through two segments. The Experiential segment consists of approximately:

• 148 theater properties
• 59 eat and play properties
• 25 attraction properties
• 11 ski properties
• Four experiential lodging properties
• One gaming property
• One cultural property
• 22 fitness and wellness properties

The Education segment comprises 46 early childhood education centers and nine private schools.

EPR Properties’ investment portfolio includes ownership of and long-term mortgages on experiential and educational properties. The company has investments in approximately 44 states. All the company’s owned single-tenant properties are leased on long-term, triple-net terms.

The J.P. Morgan price target is $62.

And More

Here are four additional companies on the list that are steady dividend-paying stocks trading at reasonable valuations.

Annaly Capital

With a massive 1240% dividend yield and trading right near the J.P. Morgan target price, Annaly Capital Management (NYSE: NLY) is a total passive-income play. The company is a diversified capital manager with investment strategies across the mortgage finance sector.

It owns a portfolio of real estate-related investments, including:

• Mortgage pass-through certificates
• Collateralized mortgage obligations
• Credit risk transfer (CRT) securities
• Securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans, and mortgage servicing rights

Its investment groups include:

• Annaly Agency Group, which invests in agency mortgage-backed securities collateralized by residential mortgages.
• Annaly Residential Credit Group invests in non-agency residential mortgage assets within residential and commercial markets.
• Annaly Mortgage Servicing Rights Group invests in MSR, which grants the right to service residential mortgage loans in exchange for a portion of the interest payments on those loans.

The $24 J.P. Morgan price target is likely to go higher.

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecommunications company has undergone a lengthy restructuring process while maintaining a solid dividend yield of 5.42%. Thirteen analysts have given the stock a Buy rating, reflecting broad Wall Street support. AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• SecuT
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services.

It markets its communications services and products under:

• AT&T
• Cricket
• AT&T Prepaid
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a $34 price target for the stock.

First Industrial Realty Trust

While off most people’s radar, this REIT pays a solid 2.94% dividend and offers decent upside to J.P. Morgan’s target. First Industrial Realty Trust (NYSE: FR) is a self-administered and fully integrated real estate company. The company is an owner, operator, developer, and acquirer of logistics properties. Through its fully integrated operating and investing platform, it provides facilities and customer service to multinational corporations and regional firms that are essential for their supply chains.

In total, the company owns and has under development approximately 71.6 million square feet of industrial space concentrated in 15 target MSAs. Its tenants are engaged in a variety of businesses, including:

• E-commerce
• Third-party logistics and transportation
• Consumer and other manufactured products
• Retail and consumer services
• Food and beverage
• Lumber and building materials
• Wholesale goods
• Health services
• Governmental and other

Through a wholly owned taxable REIT subsidiary of the operating partnership, the operating partnership owns an equity interest in a joint venture. The company also provides various services to the joint venture.

The J.P. Morgan target price is $70.

Kontoor Brands

While another off-the-radar stock, Kontoor Brands (NYSE: KTB), has tremendous upside and well-known brands, it pays a reasonable 2.47% dividend. The global lifestyle apparel company designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories. Its lifestyle, outdoor, and workwear brands include Wrangler, Lee, and Helly Hansen.

The Wrangler brand offers multiple sub-brands, collections, and product lines within the Wrangler brand to target specific consumer demographics and consumer end-users, including:

• 20X
• Aura from the Women at Wrangler
• Cowboy Cut
• Premium Patch
• Riggs Workwear
• Rock 47
• Rustler
• Wrangler Retro
• Wrangler Rugged Wear
• Wrangler All Terrain Gear

The Lee segment offers denim, apparel, footwear, and accessories for adults and children. The Lee brand offers multiple sub-brands, collections, and product lines, including:

• Lee101
• Riders
• Storm Rider
• Lee MVP
• Lee X

The Helly Hansen brand is an outdoor and workwear brand. Sub-brands include Helly Hansen Sport and Helly Hansen Workwear.

J.P. Morgan has set a price target of $90.

The post JP Morgan Adds One of Our Favorite Dividend Stocks to the July US Equity Analyst Focus List appeared first on 24/7 Wall St..

AT&T (NYSE:T) and Verizon (NYSE:VZ) both closed transformative fiber acquisitions early this year and just delivered Q1 2026 results that show two telecom giants racing toward the same convergence prize from very different starting points.

AT&T is running an established playbook. Verizon is executing a turnaround under a brand new CEO. The quarter makes their choices unusually easy to compare.

Fiber Momentum Carries One. A Turnaround Story Carries the Other.

AT&T posted $31.51 billion in revenue and adjusted EPS of $0.57, with consumer wireline broadband revenue jumping 27.3% to $2.80 billion after closing the Lumen Mass Markets fiber deal on February 2, 2026.

John Stankey told investors AT&T saw “our best first quarter ever for Advanced Connectivity internet customer net additions.” The numbers back him up: 584,000 internet net adds and 294,000 postpaid phone adds at a tight 0.89% churn. That is a well-oiled machine.

Verizon looks different. New CEO Dan Schulman inherited a franchise losing share, and Q1 delivered the first positive Q1 postpaid phone net adds since 2013, a swing of over 340,000 year over year. Revenue reached $34.44 billion with adjusted EPS of $1.28.

Fiber broadband connections climbed 41.9% to roughly 10.8 million after the Frontier deal closed January 20, 2026. Schulman called it a “turnaround” that is “gaining momentum.” A January network outage still cost 80 basis points of wireless service revenue growth, so this is momentum with scars.

Convergence Leader vs Turnaround Bet

Stankey is doubling down on bundling fiber and 5G through the AT&T Guarantee. Schulman is stripping friction, cutting SG&A by 3.1%, and pushing business EBITDA margins to 26.5% from 23.1%.

Verizon still carries higher leverage and softer wireless economics: postpaid phone churn rose to 0.97% and ARPA slipped 1.9%.

The Next Test Is Whether Verizon Can Hold Its Gains

I will be watching whether AT&T hits its 40 million fiber locations target by year-end while keeping churn under one point. For Verizon, the question is durability.

One clean quarter of phone adds is not a trend, and the Starlink mobile narrative already spooked retail traders, dragging Reddit sentiment to a bearish 32 in late June. You should also keep an eye on integration costs from Frontier and whether Verizon repays that debt on schedule.

Why I Lean Toward AT&T Today, With a Caveat

Personally, I find AT&T’s story easier to trust right now. The convergence flywheel is already spinning, the fiber lead is real, and shares trade at just 7x trailing earnings after falling 25.99% over the past year.

For yield-focused investors, Verizon’s 6.27% dividend and raised guidance frame it as the turnaround story to watch, especially if Schulman keeps delivering. If input costs, Starlink pressure, or another outage rattle the group, I would rather own the operator already executing than the one still proving it can.

The post AT&T vs Verizon: The Better Dividend Stock For 2026 appeared first on 24/7 Wall St..

When a former Dividend Aristocrat slashes its payout, the market’s memory is long. But four years on, AT&T (NYSE:T) has built a cash flow machine that, in my view, makes its current distribution one of the safer high yields in the large-cap universe. With shares trading at a sub-8x forward earnings multiple and a yield approaching 5%, the question for retirees is simple: can this $1.11 payout hold?

The Dividend at a Glance

Cash Flow Covers the Dividend Nearly 2.4 Times Over

AT&T generated $19.4 billion in free cash flow during FY 2025 against just $8.18 billion in common dividends. With trailing EPS of $2.97 against the $1.11 payout, only about 37% of profits go out the door.

Management has guided $18 billion-plus in free cash flow for 2026, leaving ample cushion even with $8 billion in planned buybacks.

Debt Is Heavy, but Leverage Is Manageable

Leverage will tick up to roughly 3.2x after the EchoStar spectrum deal closes, then drift back toward 2.5x within three years. That trajectory protects the dividend.

The Track Record: Still Haunted by 2022

AT&T cut its quarterly payout from $0.52 to $0.2775 in early 2022 after the WarnerMedia spin to Discovery, ending a 35-plus year streak of increases. The current rate has held flat for 16 straight quarters. No growth, but no further cuts.

What Stankey Is Telling Shareholders

CEO John Stankey on the Q1 2026 call: “We returned $4.3 billion to shareholders in the first quarter through dividends and share repurchases. We continue to expect to repurchase stock this year and to maintain a consistent pace of buybacks through 2028 as we execute against our plans to return $45 billion plus to shareholders over this time period.”

That language tells me the $1.11 floor is secure, with buybacks serving as the flex variable.

The Verdict: This Dividend Is Safe

Dividend Safety Rating: Safe. A 42% FCF payout ratio, a 0.395 beta, and predictable wireless subscription cash flows give this distribution a wide margin of safety. I’d be comfortable owning AT&T for income if you believe the fiber buildout pays off and net leverage drifts back below 2.7x by 2027. I’d be cautious if integration costs from Lumen and EchoStar push capex higher than guided and FCF dips below $17 billion. On balance, the math works. For retirees seeking a near-5% yield from a defensive cash generator, this one clears the bar.

The post This Cash-Rich Telecom Anchor Is an Unbeatable Haven for Retirees appeared first on 24/7 Wall St..

Volatility can lower the cost of entry into businesses that throw off real cash, even as investors recognize that a low share price alone is no guarantee of a bargain. Heading into the back half of 2026, three blue-chip names trading well below the $45 mark stand out for the same reason: predictable cash flows, defensive betas, and dividend yields that make Treasury bills look pedestrian. For retail investors scanning headlines and watching their screens flicker red and green, these are the kinds of stocks worth pulling up a chair for.

With that in mind, here are three stocks trading under $45 that combine cheap valuations, durable income, and entrenched competitive moats heading into a choppier market.

Pfizer (NYSE: PFE)

Pfizer (NYSE:PFE) is the global pharmaceutical giant behind blockbusters across oncology, vaccines, primary care, and specialty medicines. At a recent $24.29, well under the $45 ceiling, the stock sits roughly mid-range of its 52-week band of $21.97 to $28.28, giving income-focused buyers an accessible entry into a mega-cap dividend payer.

The fundamentals make the case. Pfizer trades at a trailing P/E of 19 and a forward P/E of 8, with a dividend yield of 7.27% backed by a quarterly payout of $0.43 that has been raised every year for more than a decade. Wall Street’s average price target of $29.15 implies meaningful upside from current levels, with 11 buy or strong buy ratings against 15 holds and three sell-side bears. Q1 2026 results showed revenue of $14.45 billion, up 5.4% year over year, and adjusted EPS of $0.75, marking a fifth consecutive earnings beat.

The bull case rests on three pillars. First, the Vyndamax patent settlement extends U.S. exclusivity to June 2031, defusing the loudest patent cliff fears. Second, launched and acquired products grew 22% operationally in Q1, led by Padcev (+39%), Nurtec ODT (+41%), and Abrysvo (+37%). Third, CEO Albert Bourla pointed to roughly 20 pivotal study starts planned for 2026, including 10 obesity assets from the Metsera acquisition, saying the company is “particularly encouraged by what we’re seeing in oncology and obesity.”

The risk worth respecting is COVID-related revenue erosion, with Comirnaty down 59% and Paxlovid off 62%, plus a $1.5 billion loss-of-exclusivity headwind baked into 2026. Even Jim Cramer recently quipped on Mad Money that with Pfizer, “you’re just buying on that dividend yield.” For value and income investors, that may be exactly the point.

AT&T (NYSE: T)

AT&T (NYSE:T) is the converged fiber and 5G wireless operator quietly executing one of the cleaner turnaround stories in large-cap telecom. Shares recently traded at $22.72, down 6.5% year to date, which has compressed the valuation to a level rarely seen in dominant U.S. infrastructure plays.

On the numbers, AT&T trades at a trailing P/E of 8 and a forward P/E of 10, with a dividend yield of 4.95% on a $0.2775 quarterly payout that has held steady since 2022. Analysts carry an average price target of $30.25 with 15 buy or strong buy ratings, 10 holds, and zero sell ratings. Q1 2026 brought revenue of $31.51 billion (+2.9% YoY) and adjusted EPS of $0.57, up 11.8% YoY, including the best Q1 ever for Advanced Connectivity internet net adds at 584,000.

The bull case is operational momentum colliding with capital returns. CEO John Stankey called out the “best first quarter ever for Advanced Connectivity internet customer net additions.” The closed Lumen Mass Markets fiber acquisition on February 2, 2026 pushed reach to 37 million-plus fiber locations, with a target of 60 million by 2030. Management reiterated free cash flow of $18 billion-plus in 2026, $19 billion-plus in 2027, and $21 billion-plus in 2028, and committed to $45 billion-plus in shareholder returns from 2026 through 2028, including roughly $8 billion in buybacks this year.

The risk: leverage. Net debt-to-EBITDA sits at 2.71x and rises toward 3.2x post-EchoStar and Lumen, and legacy wireline revenue is still declining 20%+. Reddit sentiment recently flipped, with r/wallstreetbets discussion turning bearish at scores of 33 to 38 on June 26-27 after running bullish earlier in the month on a congressional trade signal flagged on r/stockmarket. For investors who can stomach the leverage, the fiber flywheel and capital returns make the math interesting.

Kinder Morgan (NYSE: KMI)

Kinder Morgan (NYSE:KMI) operates one of the largest natural gas pipeline, products pipeline, terminal, and CO2 networks in North America. Shares recently changed hands at $33.19, up 25.37% year to date and 143.8% over the past five years, but still comfortably under the $45 ceiling and within reach of retail-sized positions.

The setup is rare in midstream: real growth tied to secular demand. KMI trades at a trailing P/E of 22 and a forward P/E of 24, with a dividend yield of 3.56% on a $1.19 annualized payout (+2% YoY). Q1 2026 revenue rose to $4.83 billion (+13.5% YoY), adjusted EPS came in at $0.48 versus the $0.39 estimate, a 22.11% beat, and adjusted EBITDA expanded 18% to $2.54 billion. Wall Street’s average price target of $35.33 and 11 buy ratings to 12 holds and zero sells reflect the durability of the cash flow.

The bull case is direct exposure to two of the most-watched demand curves on the planet: LNG exports and U.S. data center power. Management noted long-term contracts to move 8 Bcf/d to LNG facilities today, growing to 12 Bcf/d by end of 2028, with roughly 70% of future data center power demand sitting in KMI-served states. The project backlog stands at $10.1 billion, with about 92% in natural gas, and Moody’s recently upgraded KMI to Baa1, putting all three agencies at BBB+. CEO Kim Dang attributed Q1 to “record-setting performance in our Natural Gas Pipelines business segment.”

The risk worth tracking is commodity and policy exposure: refined products volumes fell 2% and crude/condensate dropped 12%, and tariff or permitting timing can move the needle on the backlog. But with leverage at a manageable 3.6x net debt-to-EBITDA and natural gas demand projected to grow 17% through 2030, KMI looks like the cleanest pure-play infrastructure beneficiary on the list.

The Bottom Line

A share price under $45 does not, on its own, make a stock cheap or safe. What earns these three names a spot on a watch list right now is the combination of betas well below 1.0, durable dividend streams, and entrenched moats that historically hold up when the broader market gets choppy. Before adding any of them to a portfolio, readers should weigh their own time horizon, income needs, and tolerance for sector-specific risk, and do their own research on how each business fits the rest of their holdings.

The post 3 Dirt-Cheap Stocks Under $45 Built to Outperform in a Volatile Market appeared first on 24/7 Wall St..

About $85,000 a year is what a comfortable middle-class retirement costs in most U.S. metros after Social Security benefits fill part of the gap. It is also close to the median household income in the country. For investors who think in terms of replacing a paycheck through dividends, the question is simple: How much capital does it take, and which stocks get you there?

The engine is one equation. Income target divided by yield equals capital required. Run it at three yield levels and the tradeoffs reveal themselves.

The Conservative Tier: 3% to 4% Yield

At a 3% blended yield, $85,000 in annual income requires roughly $2.83 million in capital. At 3.5%, the number drops to about $2.43 million. At 4%, around $2.13 million. This is the largest check, and for good reason. You are buying dividend growth on top of dividend size.

Coca-Cola (NYSE:KO) anchors this tier. The current yield sits at 3%, just below the band, but the trajectory is the story. The quarterly dividend has stepped from $0.485 in 2024 to $0.51 in 2025 to $0.53 in 2026, extending a streak that already covers 63 consecutive years of annual increases. Q1 2026 revenue grew 12% year over year, and the company expects comparable EPS growth of 8% to 9% for the full year. KO trades at a 25 trailing P/E with a beta of 0.35, which is the textbook sleep-at-night profile.

Other names that round out this tier carry similar profiles: long histories of annual raises, durable cash generation, modest payout ratios. The portfolio compounds. The check is bigger up front because the math demands it.

The Moderate Tier: 5% to 7% Yield

At 6%, $85,000 requires about $1.42 million. At 7%, roughly $1.21 million. The capital requirement drops sharply, and three of our four named stocks live here.

AT&T (NYSE:T) yields 5% at a current price of $20.82. The quarterly payout has been frozen at 27 cents since the WarnerMedia spinoff reset in 2022, and management has guided to holding that $1.11 annualized rate through 2028. Free cash flow is expected to scale from $18 billion in 2026 to $21 billion by 2028, but the dividend itself is not moving.

Enterprise Products Partners (NYSE:EPD) yields 6% and has raised its distribution for 27 consecutive years. Q1 2026 adjusted EBITDA grew 10%. Important caveat: EPD is a limited partnership, so investors receive a Schedule K-1 instead of a 1099, which complicates tax filing and creates state-level filing obligations.

Realty Income (NYSE:O), the monthly dividend REIT, yields 5%. The June 2026 monthly distribution was 27 cents, extending a streak of 670 consecutive monthly dividends and 114 consecutive quarterly increases. REIT distributions are generally taxed as ordinary income rather than qualified dividends, which matters in taxable accounts.

The Aggressive Tier: 8% to 14% Yield

At 10%, $85,000 requires $850,000. At 12%, about $708,333. The capital math looks attractive. The risk profile does the talking.

This tier is populated by business development companies, mortgage REITs and high-yield energy names. The categories carry elevated balance sheet leverage, sensitivity to short-term rates, and a history of cuts during cycles. Stock prices in these names often erode while the headline yield stays advertised. The investor is choosing current income over total return and over inflation protection.

The Insight Most Retirees Get Wrong

Compare the two paths. KO has raised its dividend every year through multiple recessions, with the quarterly rate climbing from $0.485 to $0.53 in three years. T’s payout has been static since 2022, and the prior cut took the dividend from 52 cents to 27 cents per quarter, which equates to a roughly 47% reduction. Over a 20-year retirement, a steady grower will likely overtake a frozen high-yielder on income, with the principal still intact. The high yield looks larger on day one. The compounding grower looks larger on day 3,000.

The price tape reinforces it. KO is up more than 15% over the past year. T is down more than 28% in the same window. Yield without growth is just a number; growth is what makes it a strategy.

What to Do

• Pull the current yield on every name before sizing a position. Yields move with price, and the same ticker can shift tiers in a single quarter.
• Model a 25% dividend cut from your single highest-yielding holding and check what that does to monthly income. If the answer is uncomfortable, your concentration is the problem.
• If retirement is within five years, stress-test the aggressive tier against the last two cut cycles in BDCs and mortgage REITs. The yield on the screen can diverge meaningfully from the yield you actually receive.

The post This Dividend Strategy Generates $85,000 a Year for Retirees appeared first on 24/7 Wall St..

U.S. telecom and media giants are moving in opposite directions in midday trading. Comcast (NASDAQ:CMCSA) stock is up 7% to $24.76, while AT&T (NYSE:T) stock is down 5% to $21.52, and Verizon (NYSE:VZ) stock is down 7% to $43.29.

The split reflects three distinct catalysts hitting the sector at once. Comcast is rallying on a corporate breakup plan, AT&T faces a CFO transition plus satellite-broadband downgrade pressure, and Verizon is being removed from the Dow Jones Industrial Average.

Comcast Splits Into Two Companies

Comcast announced Monday that it intends to split into two standalone public companies, separating media from its technology and connectivity business through a tax-free spin-off of NBCUniversal and Sky. The separation is expected to take approximately one year, with current holders receiving stakes in both entities.

Co-CEO Mike Cavanagh will become CEO of NBCUniversal, former CFO Michael Angelakis will become CEO of Comcast, and Brian Roberts remains chairman over both. Cavanagh stated that NBCUniversal with Sky will have “the scale, brands, content and financial resources to compete as a premier global media and entertainment company.”

The move follows a brutal stretch for Comcast stock, which was down 22% over the past 12 months heading into today. Shares trade at a trailing P/E ratio of 5x with an analyst target price of $32.36. Reddit chatter on r/stocks tagged the breakup as “The Bull Catalyst the Sleeping Giant Has Been Waiting For.”

AT&T Hit by CFO Exit and Starlink Downgrade

AT&T disclosed that CFO Pascal Desroches will retire, effective December 31. Jennifer Biry, former CFO/COO of McAfee and former WarnerMedia CFO, was appointed Deputy CFO effective July 6, and steps into the CFO role on January 1, 2027.

Separately, AT&T stock was downgraded by a major Wall Street analyst citing rising broadband competition from satellite providers, with the upcoming SpaceX IPO drawing fresh attention to Starlink as a long-term threat. AT&T was also removed from the Russell Top 50 Index in the latest reconstitution.

The valuation debate cuts both ways. AT&T trades at a P/E ratio of 7x versus a telecom average near 17x and well below the analyst target of $30.25, paired with a 4.95% dividend yield. Reddit sentiment on r/WallStreetBets ran consistently bearish into today’s session.

Verizon Loses Its Dow Seat

S&P Dow Jones Indices is replacing Verizon with Alphabet (NASDAQ:GOOGL) in the Dow Jones Industrial Average, effective prior to the opening of trading on June 29. The index committee cited Verizon’s relatively low share price, which made it a small contributor to the price-weighted benchmark.

Verizon stock had been a relative bright spot, up 18% over the past year before today’s drop, supported by a 6% dividend yield and an analyst target price of $51.9. The Dow removal is largely mechanical, but it compounds community concerns around satellite-broadband competition, a high debt load, and dividend sustainability.

The dominant Reddit thread driving bearish Verizon chatter was titled “SpaceX Reportedly Eyes U.S. Starlink Mobile Push: All Your Phone Bills Are Belong to us!”, echoing the same Starlink narrative pressuring AT&T. The cross-ticker overlap suggests investors are pricing in shared satellite-broadband risk across both wireless incumbents.

What to Watch Next

The common thread linking AT&T and Verizon weakness is satellite-broadband disruption fears, while Comcast’s spinoff offers a different value-unlocking thesis. Index removals are passive-flow events, and a planned CFO transition is not inherently negative, so today’s selling pressure on AT&T and Verizon may invite contrarian interest given the dividend profiles.

Stock traders can watch for whether Comcast holds its gains into the close as arbitrage desks model the NBCUniversal stub. For AT&T and Verizon, the next signal points are Q2 2026 earnings and any follow-on analyst notes addressing Starlink exposure. Ultimately, investors should consider keeping their position sizes modest while the catalysts settle.

The post Telecom Turmoil: Comcast Rises 7% on Media Spinoff, AT&T Falls 5% on CFO Exit and Starlink Threat, Verizon Sinks 7% on Dow Exit appeared first on 24/7 Wall St..

Today’s widely discussed smart-money signal on a SpaceX (NASDAQ:SPCX)-T-Mobile (NASDAQ:TMUS) tie-up comes from a single TD Cowen analyst, not consensus. Meanwhile, Wall Street’s broader view on T-Mobile remains bullish on fundamentals rather than takeover speculation. A TD Cowen analyst, as reported via TheFly and StockTwits, floated the scenario that SpaceX’s Starlink unit could need to acquire a major U.S. wireless carrier and T-Mobile “seems to us the clear choice.”

This remains speculation at the analyst level. SpaceX hasn’t announced or been reported to be pursuing T-Mobile, and the market reflects that. SPCX stock traded near $153 in Thursday’s afternoon session, down 1%, while T-Mobile stock rose 1% to $182 and change; neither move was consistent with a real bid catalyst.

For institutional investors, the operative read is straightforward: treat the TD Cowen note as a strategic thought experiment about Starlink’s terrestrial network gap, not a deal in progress. The note explores a hypothetical path rather than signaling imminent corporate action.

What the TD Cowen Analyst Actually Argued

The analyst’s reasoning rests on SpaceX’s prospectus filings, which point to explicit ambitions for Starlink to compete directly in high-density urban and suburban markets, segments demanding a far larger terrestrial footprint than the rural and isolated areas Starlink has historically served. Next-generation Starlink Mobile satellites would require a massive terrestrial footprint to deliver on those ambitions.

The analyst noted that the “Big Three” U.S. wireless carriers have reportedly refused to lease network capacity to SpaceX via mobile virtual network operator (MVNO) agreements, leaving acquisition as the apparent strategic path. T-Mobile’s momentum, “maverick” culture, position as a pure-play wireless provider, and existing Starlink partnership made it the analyst’s preferred candidate, with AT&T (NYSE:T) floated as “another thought.”

What the Data Says About TMUS and SPCX

On T-Mobile, consensus is decisively bullish independent of M&A talk. Alpha Vantage shows an analyst target price of $259.08, with 9 Strong Buy, 15 Buy, 4 Hold, and zero Sell or Strong Sell ratings against T-Mobile stock’s current $182.76. T-Mobile’s trailing P/E ratio is 20x, the forward P/E ratio is 18x, and the beta sits at 0.3.

Operationally, T-Mobile posted Q4 2025 revenue of $24.33 billion, up 11% year over year (YoY), free cash flow of $4.19 billion, and 962,000 postpaid phone net adds in the quarter. Management guided FY2026 core adjusted EBITDA of $37 billion to $37.5 billion and authorized a $14.6 billion stockholder return program through December.

SpaceX has no public analyst coverage, no consensus price target, and no institutional positioning data. SPCX carries a market cap of roughly $1.16 trillion. SpaceX stock IPO’d June 15 at $135, surged to a peak around $225 before sharp volatility, and has dropped in five of its first eight sessions, with a one-week change of around -20%.

The Gap Between the Story and the Tape

Wall Street’s consensus target of $259.08 on T-Mobile stock sits well above the current share price, a gap unrelated to SpaceX speculation. TMUS stock is down 10% year to date, even as analysts maintain their constructive stance on fundamentals.

For SpaceX, the absence of any prediction market on a wireless-carrier acquisition signals skepticism. Polymarket hosted active SpaceX M&A markets, with the Cursor/Anysphere acquisition question settling at a last trade price of 0.999, yet no carrier-acquisition contracts exist on the platform. So far, traders generally aren’t pricing in the T-Mobile scenario.

Retail sentiment on Stocktwits was reportedly bearish on both SPCX and TMUS this week, a notable divergence from the institutional bull case. That split is a useful indicator of speculative-versus-fundamental cross-currents in both names.

Is the Smart Money Right, and Should You Act on It?

On T-Mobile, institutional consensus rests on documented cash-flow growth, broadband subscriber leadership, and a multi-billion-dollar capital return program, not takeover speculation. The TD Cowen scenario is internally logical given SpaceX’s stated urban broadband ambitions, but it remains one analyst’s hypothetical without corporate confirmation from either company.

A SpaceX acquisition of T-Mobile would face significant regulatory, antitrust, financing, and integration hurdles. Besides, SpaceX is already digesting its $60 billion Anysphere acquisition announced June 16.

Investors can monitor Starlink’s terrestrial buildout disclosures and any official carrier commentary from SpaceX as real signals worth tracking. It makes sense to keep one’s position sizes modest given how speculative the M&A premise remains. For now, the smart money’s verifiable view rests on T-Mobile’s fundamentals, not takeover talk.

The post Could SpaceX Buy T-Mobile? A TD Cowen Analyst Floats the Idea appeared first on 24/7 Wall St..

A panel discussion on episode 1,089 of This Week in Tech (TWiT) debated sky-high AI valuations and capital allocation, with host Leo Laporte and guests Ian Thompson, Owen Thomas, and Doc Rock. They argued that today’s AI leaders face the same capital-allocation challenge that confronted earlier technology giants.

Their warning centered on Intel (NASDAQ:INTC), which Thompson described as a company that spent heavily on share buybacks while falling behind in manufacturing technology. With Anthropic reportedly approaching a $1 trillion valuation and OpenAI valued at more than $850 billion, the panel argued that how AI companies deploy capital may matter just as much as how quickly they grow.

Ian Thompson’s Warning About Share Buybacks and Innovation

Thompson’s argument: AI giants risk repeating what he framed as Intel’s defining error. He said Intel “spent billions buying back its own shares to support the share price and let chip manufacturing technology just lie useless. And now they’re paying the price for it.” Thompson added that share buybacks were illegal until Reagan-era reforms in the 1980s.

The market has repriced that thesis in real time. Intel shares closed at $133.99 on June 18, with the stock up 263.12% year to date and 523.5% over the trailing year. CEO Lip-Bu Tan told investors on the Q1 FY2026 call that “the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”

Intel’s Q1 FY2026 earnings release showed revenue of $13.58 billion, up 7.2% year over year, with Data Center & AI revenue of $5.05 billion (+22% YoY) and Intel Foundry revenue of $5.42 billion (+16% YoY).

Why Anthropic’s $1 Trillion Valuation Matters

According to the panel, Anthropic has edged past OpenAI to nearly a $1 trillion valuation as a privately held company, a milestone a guest called “unprecedented.” The reporter noted that OpenAI counts 1 billion weekly active users and raised financing at an $852 billion valuation, while cautioning that OpenAI’s reported losses are complicated by its nonprofit-to-for-profit conversion and non-cash stock compensation. The guest also said OpenAI has reportedly confidentially filed to go public but may delay the IPO.

How Executive Incentives Can Distort Capital Allocation

Doc Rock connected the buyback debate to executive compensation, citing former AT&T (NYSE:T) CEO Randall Stephenson as an example of misaligned incentives. Stephenson received roughly $48 million in annual salary, while AT&T nearly tanked. Doc Rock and host Leo Laporte argued that buybacks can sometimes reward executives and drive the share price higher without necessarily improving a company’s long-term competitive position.

AT&T, under CEO John Stankey, has pivoted toward fiber and wireless. AT&T’s Q1 FY2026 adjusted EPS came in at $0.57 on revenue of $31.51 billion (+2.9% YoY), with 584,000 internet net adds in the quarter. Management reiterated full-year 2026 guidance for adjusted EPS of $2.25 to $2.35 and free cash flow of $18 billion-plus. The shares closed at $22.01 on June 18, down 9.42% year-to-date and 16.95% over the trailing year. AT&T trades at a trailing P/E of 7 with a dividend yield of 4.95%.

What Investors Should Watch Next

The panel closed skeptical over how much of the headline AI valuations reflects real value rather than “funny money.” The practical question today is whether AI infrastructure leaders are reinvesting in manufacturing capacity, talent, and intellectual property at a pace that justifies private-market valuations, or whether they tilt toward managing shareholder returns before the technology cycle matures. Intel’s foundry buildout and AT&T’s fiber capex offer investors two case studies in how large-scale capital allocation decisions can affect a stock’s long-term returns and competitive position.

The post As Anthropic Nears $1 Trillion Valuation, Tech Veterans Warn Against Repeating Intel’s Biggest Mistake appeared first on 24/7 Wall St..

Earned income disappears the moment you stop showing up. Dividend income does not. That asymmetry is why so many investors over the past two years have shifted serious capital into companies that mail a check every 90 days regardless of layoffs, headlines, or a University of Michigan Consumer Sentiment reading of 49.8 that sits firmly in recessionary territory.

The appeal sharpens when you compare alternatives. Rental property locks up capital and demands midnight phone calls. Private credit funds gate your money for years. High-yield dividend stocks pay you in cash, settle in two days, and let you walk away anytime. With the 10-Year Treasury at 4.48%, any equity yield above that bar earns its keep, and the three names below clear it by a wide margin.

The market routinely mispriced mature cash-cow businesses whenever growth narratives dominate. We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $1,100 a year in passive annual income if you invest just $6,667 in each stock at the time of this writing.

AT&T

• Stock #3: AT&T
• Yield: 4.83%
• Shares for $6,667: ~286
• Annual Passive Income: ~$322

AT&T (NYSE:T) has become a focused converged-connectivity operator after years of media misadventures. The $23.29 share price reflects the market’s lukewarm view of a slow-growth telecom carrying $138.4 billion in total debt, but the cash machine underneath is humming. Q1 2026 produced $31.51 billion in revenue and adjusted EPS of $0.57, with management guiding to $18 billion-plus in free cash flow this year.

The yield is elevated because AT&T cut its payout after the Warner spin-off and the market has yet to forgive the move. The quarterly dividend has held steady at $0.2775 per share since 2022, and CEO John Stankey is funneling capital into roughly $8 billion of buybacks planned for 2026. Institutions own 69.3% of the float, with Vanguard and BlackRock leading the register.

Altria

• Stock #2: Altria
• Yield: 5.88%
• Shares for $6,667: ~96
• Annual Passive Income: ~$406

Altria (NYSE:MO) is the Marlboro parent and a textbook example of a melting ice cube that still throws off enormous cash. Cigarette volumes shrink every year, yet pricing power keeps the profit pool intact. Q1 2026 delivered $5.43 billion in revenue and adjusted diluted EPS of $1.32, with smokeable products carrying a 65.1% adjusted OCI margin.

The dividend payout drives the entire return profile. Altria just raised its quarterly payout to $1.06 per share and paid out $1.8 billion in Q1 2026 alone. Years of returning nearly every dollar to shareholders have produced negative shareholders’ equity of $3.2 billion, which is unusual but functionally irrelevant as long as the cash keeps flowing. Institutions hold 63.5% of the stock.

Verizon

• Stock #1: Verizon
• Yield: 5.89%
• Shares for $6,667: ~142
• Annual Passive Income: ~$401

Verizon (NYSE:VZ) just closed the Frontier Communications acquisition on January 20, 2026, pushing fiber connections to roughly 10.8 million. Q1 produced its first positive Q1 postpaid phone net adds since 2013, and adjusted EBITDA grew 6.7% to $13.39 billion.

The yield is structurally high because Verizon carries $172.5 billion in total debt and trades at a discount to slower-growing utilities. The payoff is one of the most reliable dividends in the S&P 500: 19 consecutive years of increases, most recently to $0.7075 per quarter. Institutional ownership sits at 70.4%.

The Combined Income Picture

Combined, these 3 positions generate $1,129 in annual passive income on a $20,001 investment, a blended yield of 5.6%. Altria contributes $406, Verizon adds $401, and AT&T rounds out the portfolio with $322.

The quiet magic of a portfolio like this is what happens when you flip the dividend reinvestment switch on. Every quarterly check buys fractional shares at whatever price the market offers that day, which means down moves accelerate your share count instead of scaring you out of the position. Five years of that mechanic, applied to yields north of 5%, can quietly double the income stream without a single additional dollar of fresh capital.

The post The Exact Passive Income $20,000 Generates in High-Yield Dividend Stocks appeared first on 24/7 Wall St..

At $46.95 for Verizon (NYSE:VZ) and $23.21 for AT&T (NYSE:T), both telecom giants screen as range-bound. VZ sits just below its $50.91 52-week high, while T actually trades closer to its $22.32 52-week low after a recent downgrade.

Both companies are mid-execution on aggressive fiber rollouts. Verizon closed its Frontier deal in January 2026 and now serves approximately 16.8 million broadband connections under new CEO Dan Schulman.

AT&T closed its Lumen Mass Markets fiber acquisition in February 2026, lifting its footprint to over 37 million fiber locations with a target of 60 million by 2030. Same playbook, very different stock reactions.

The Bull Case: Convergence Is Working

Verizon raised 2026 adjusted EPS guidance to $4.95 to $4.99 and posted its first positive Q1 postpaid phone net additions since 2013. Free cash flow guidance of $21.5 billion or more funds a $3.0 billion buyback and the dividend.

AT&T trades at a forward multiple of 10x against guided EPS of $2.25 to $2.35 with a double-digit three-year CAGR. Management is targeting $45 billion in shareholder returns through 2028 and an $8 billion repurchase in 2026 alone. Advanced home internet revenue jumped 27.3%.

The Bear Case: Debt, Downgrades, and Soft Performance

Verizon carries $172.5 billion in total debt post-Frontier, with interest expense up 18.9% YoY. Postpaid ARPA slipped 1.9% and churn ticked to 0.97%.

AT&T was just downgraded by Oppenheimer from Outperform to Perform on low-earth-orbit satellite competition concerns, with the stock hitting a fresh 52-week low. Net leverage is expected to peak near 3.2x post-EchoStar, and legacy revenues are guided to fall 20%+ in 2026.

The Case for Patience

Verizon’s turnaround is real but already priced. AT&T’s discount is real but the downgrade narrative needs to clear. Investors collecting Verizon’s 6.08% yield and AT&T’s 4.93% yield are paid to wait for the next two earnings reports to resolve the divergence.

What the Data Shows

Verizon is up 19.07% year to date against an analyst target of $51.85 from 25 covering analysts (3 Strong Buy, 8 Buy, 14 Hold, 0 Sell), implying roughly 10% upside on a trailing P/E of 11x.

AT&T is down 4.48% YTD, trades at a trailing P/E of 7x, and carries an analyst target of $30.30 (3 Strong Buy, 12 Buy, 10 Hold, 0 Sell) for implied upside near 31%. For context, the S&P 500 is up roughly 7% year to date, so Verizon is meaningfully ahead of the index while AT&T is trailing it. Analyst targets are one input among many.

The Verdict: Hold Both Until the Next Earnings Report

At $46.95 for Verizon and $23.21 for AT&T, both stocks look range-bound. Here is why.

Verizon has done the work, but at 11x earnings near a 52-week high, the easy money from the Schulman turnaround narrative is already in the price. The path to $55 runs through another postpaid beat and visible Frontier synergies. Anything less and the stock retests the 200-day at $44.35.

AT&T looks statistically cheap, but the Oppenheimer downgrade and fresh 52-week low signal the market wants proof that LEO satellite migration is not eroding the broadband moat. Q2 fiber net adds and churn will decide whether $23 was the bottom or a waypoint.

Shareholders are paid handsomely to wait through one more quarter before reassessing positioning at these prices.

The post Verizon Communications at $46 And AT&T at $23: Buy, Sell or Hold? appeared first on 24/7 Wall St..

The average retired worker receives roughly $23,700 per year from Social Security. A $750,000 portfolio dedicated to income generation can surpass that figure at virtually any reasonable yield level. The question is not whether the portfolio can outproduce the average Social Security benefit. The question is how much risk must be taken to achieve that income and how reliable the income stream will remain over time.

The Math is Straightforward

Multiply the portfolio value by the yield to estimate annual income. At a 3.5% yield, a $750,000 portfolio generates approximately $26,250 per year. At 6%, the income rises to $45,000. At 9%, it reaches $67,500. Each of those figures exceeds the average Social Security benefit, but the tradeoffs become increasingly important as yield rises.

Higher yields often come with greater risks to both income stability and principal preservation. A lower-yielding portfolio may produce less income today but offer stronger dividend growth and a greater margin of safety. A higher-yielding portfolio may generate substantially more cash flow in the short term, but it can also face a higher likelihood of dividend cuts or capital erosion. The real decision is not how to generate income from $750,000. It is deciding what balance of income, growth, and risk best supports the retirement you want to fund.

The Conservative Tier: 3% to 4%

This is the dividend-growth lane. Names like Johnson & Johnson (NYSE:JNJ), Procter & Gamble (NYSE:PG), and Lowe’s yield closer to 2.3% to 3% on their own, but blended with broad dividend ETFs and a slug of Treasuries currently paying almost 5% at the 10-year, a 3.5% portfolio yield is realistic.

At 3.5%, $750,000 throws off about $26,250. That is roughly $2,190 a month, which already tops the average Social Security check. The real payoff sits underneath the headline yield. JNJ has raised its payout for 64 consecutive years and most recently lifted its quarterly dividend to $1.34. P&G has paid a dividend every year since 1890 and just notched its 70th consecutive annual increase. Lowe’s has compounded its payout for decades alongside a 219% ten-year share gain.

The Moderate Tier: 5% to 7%

Step up to net-lease REITs, telecom, and high-yield equity funds and the same $750,000 can generate $37,500 to $52,500 a year. Realty Income (NYSE:O) currently yields about 5.4%, pays monthly, and has now delivered 670 consecutive monthly dividends. AT&T (NYSE:T) yields close to 4.9% on a $1.11 annualized payout, with management guiding to $18 billion or more of free cash flow in 2026.

The tradeoff is honest. AT&T cut its dividend from $0.52 to $0.2775 per quarter in 2022 and has held it flat since. Higher current yield, slower compounding.

The Aggressive Tier: 8% and Up

Leveraged covered-call funds, mortgage REITs, BDCs, and certain MLPs can push the headline yield into the 8% to 12% range. At 9%, $750,000 generates $67,500, nearly triple the average Social Security benefit.

Energy Transfer sits at the friendlier end of this tier, yielding around 6.8% with a distribution that has climbed for nine straight quarters, most recently to $0.3375. ET also issues a K-1 rather than the standard 1099, which complicates tax filing. Move further up the yield curve and principal erosion becomes routine. At that point you are spending the asset itself.

The Detail Most Income Investors Underweight

Social Security benefits receive annual cost-of-living adjustments tied to inflation, helping retirees maintain purchasing power over time. Many dividend-growth companies have historically increased their payouts at rates that exceed inflation. For example, Johnson & Johnson’s quarterly dividend rose from $1.01 in 2020 to $1.34 in 2026, while Procter & Gamble increased its annual dividend from $3.17 to $4.29 over the same period.

Over long periods, that difference can become significant. A portfolio generating roughly $2,200 per month today with dividend growth of 7% to 8% annually could potentially double its income within about a decade. By contrast, a portfolio built around a high yield with little or no distribution growth may provide more income initially but see its purchasing power gradually eroded by inflation. The most important number is not today’s yield. It is how much income the portfolio is likely to produce ten or twenty years from now.

What To Do With This

1. Map your actual retirement spending against your projected Social Security check. The gap between those two numbers is what the portfolio needs to cover.
2. Compare a 10-year total return on a 3.5% dividend growth fund against a 10% high-yield fund. Look at distributions plus NAV change together, because that is what your purchasing power actually depends on.
3. If you are inside five years of retirement, model the after-tax income at each tier. Qualified dividends and long-term gains are taxed below ordinary income, and MLP K-1s carry their own bookkeeping.

Social Security is the floor. A $750,000 portfolio, even at a sleep-at-night yield, can quietly become the larger paycheck.

The post A $750,000 Portfolio That Quietly Pays You More Than the Average Social Security Check appeared first on 24/7 Wall St..

Income investors have piled into Verizon Communications (NYSE:VZ) this year, sending the stock up 21.4% year to date as the crowd chases a 5.78% dividend yield and the company’s old “premium network” reputation.

But here’s what you should actually be watching.

Verizon is the textbook telecom value trap. The stock now carries a $199.3 billion market cap, yet its own 2025 guidance called for free cash flow of $17.5 billion to $18.5 billion, a step down from the $19.82 billion it generated in 2024. Management is guiding adjusted EPS growth of just 0% to 3%, wireline revenue fell 8.0% year over year in the most recent comparable quarter, and the pending Frontier deal piles fresh integration risk onto a balance sheet that already carries roughly $144 billion in debt. The premium that long-term holders paid for the “best network” story is now being recycled by fresh buyers chasing yield on a shrinking cash flow base. That is exactly how value traps work.

Meanwhile, AT&T (NYSE:T) is up just 1.41% year to date, sits at a smaller $170.58 billion market cap, and is quietly executing the better business. Three reasons retirement-focused investors should redirect here.

1. Free cash flow is accelerating. AT&T reiterated full-year 2026 free cash flow guidance of $18 billion+, with a multi-year ramp to $19 billion+ in 2027 and $21 billion+ in 2028. Q1 2026 alone produced $2.506 billion in free cash flow on $31.506 billion of revenue, up 2.9% year over year, with adjusted EPS of $0.57, a 11.8% jump. Verizon’s own outlook is going the other direction.

2. The convergence playbook is working in real time. AT&T booked 584,000 internet net additions in Q1, split evenly between fiber and fixed wireless, alongside 294,000 postpaid phone net adds at a churn rate of 0.89%. Nearly 45% of home internet customers also carry AT&T wireless service. Consumer wireline broadband revenue climbed 27.3% year over year. The fiber footprint sits at over 37 million locations after the Lumen Mass Markets fiber acquisition closed on February 2, 2026, with a target of more than 60 million by 2030. CEO John Stankey called Q1 “our best first quarter ever for Advanced Connectivity internet customer net additions.”

3. The capital return commitment is enormous. AT&T plans to return $45 billion+ to shareholders during 2026 through 2028, including roughly $8 billion of buybacks this year alone ($2.3 billion already executed in Q1) on top of the $1.11 annualized dividend. Shares trade at just 8x trailing earnings and 11x forward earnings, with analysts carrying an average price target of $30.37 against a $24.64 close. That is a company buying back its own discount.

Verizon delivers a fatter current yield, but it is funding that yield from a cash flow base management itself says is contracting, while carrying more debt and a heavier acquisition to digest. AT&T is in the opposite position: organic postpaid subscriber growth, a high-margin fiber footprint expanding into 2030, accelerating free cash flow, and a shrinking share count.

For investors focused on the underlying free cash flow story, AT&T’s setup looks more compelling than Verizon’s right now.

The post Forget Wall Street’s Ultimate Telecom Value Trap and Buy the Real Free Cash Flow King appeared first on 24/7 Wall St..

At the 24% federal bracket, a portfolio throwing off $40,000 in high-yield dividend income hands roughly $9,600 to the IRS every year when those shares sit in a taxable account treated as ordinary income. For investors in the gap years between retirement and RMD age 73, that drag compounds quietly until required minimum distributions force the math into the open.

The Closing Window Before RMDs

Under SECURE 2.0, the RMD age sits at 73 for taxpayers born between 1951 and 1959 and steps up to 75 for those born in 1960 or later. The years between retiring and that first forced distribution are the cleanest window to convert traditional IRA assets into a Roth, harvest qualified dividends at the 0% long-term capital gains rate (available up to roughly $96,000 of taxable income for joint filers in 2026) and relocate the highest-yielding positions before ordinary-income withdrawals take over. Roth IRAs carry no RMD for the original owner, which is the entire point of the relocation.

The Tax Delta: Roth Versus Taxable at 24%

Take a $500,000 high-yield position generating $40,000 in annual dividends. If those payouts were treated as ordinary income at the 24% bracket, the net drops to $30,400. Inside a Roth, it stays at $40,000. The annual delta is $9,600, and it repeats every year the position is held. Qualified dividends from the blue chips below get preferential LTCG treatment, so the realized gap is smaller than the ordinary-rate worst case, but it widens fast once household income climbs above the 0% LTCG threshold or if Congress lets current rates rise.

The Portfolio

Five NYSE-listed dividend payers, ranked by current yield. The higher-yield names carry the strongest case for Roth placement during the gap-year window.

• Altria (NYSE:MO): current yield 6%, quarterly dividend $1.06. The largest absolute income stream in the group and the position where Roth shelter saves the most dollars per year.
• Verizon Communications (NYSE:VZ): current yield 6%, with 26+ consecutive years of annual dividend increases. Same logic as MO: large income, large tax footprint outside a Roth.
• AT&T (NYSE:T): current yield 4%, annualized dividend $1.11. Stable at the current rate for four-plus years after the 2022 reset.
• Procter & Gamble (NYSE:PG): current yield 3%, with 70+ consecutive years of increases. Lower starting yield, but compounded raises make the Roth shelter pay off across a 20-year horizon.
• Johnson & Johnson (NYSE:JNJ): current yield 2%, after a Q2 2026 raise to $1.34 per quarter and 64 consecutive years of hikes. The dividend growth builds the Roth case here, even with a modest starting yield.

The Bracket Multiplier

The 24% number is the middle of the band. Federal brackets for 2026 sit at 22%, 24%, 32%, and 37%. Apply each to the same $40,000 in dividends treated as ordinary income, and the annual Roth advantage scales linearly: a 22% household trims less than a 37% household to the IRS, but every bracket pays. The higher the bracket, the more urgent the asset-location decision becomes during the gap years, when conversion taxes are still cheap.

The Insight Most Readers Miss

The real Roth advantage is that $9,600 delta reinvested tax-free, every year, with no future RMD pulling capital back out. Average Baby Boomer 401(k) balances of $267,900 and IRA balances of $257,002 mean millions of pre-retirees are about to start RMDs on accounts large enough that asset location drives the next decade of after-tax income more than stock selection. Held outside a Roth, the tax cost on a $40,000 dividend stream is permanent and recurring. Held inside, it is zero.

What to Do

• If your highest-yielding names sit in a taxable account, calculate your annual tax cost at your bracket before the next filing and rank positions by absolute dollar drag.
• Model a phased Roth conversion across the gap years, starting with the highest-yielders (MO, VZ, T in this group) before RMDs raise your marginal bracket.
• If your 2026 taxable income will land below the $96,000 MFJ threshold, harvest qualified dividends or convert at the 0% LTCG rate while the window is open.

The post How to Maximize Dividend Income in Retirement Before RMDs Change the Math appeared first on 24/7 Wall St..

All the major Wall Street firms we cover here at 24/7 Wall St. have a list of the top stock picks for their institutional and retail clients to invest in. Typically, these are companies that analysts have a high level of conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have strong upside to the assigned price target and a Buy or Overweight rating, depending on the company providing the coverage. After a furious rally off the February lows, and with all the major indices trading at all-time highs, many investors are treading carefully in front of the third quarter of 2026, so we were very interested to see which stocks were on the June edition of J.P. Morgan’s Analyst Focus List. All will provide investors with steady passive income and have the potential to deliver solid total returns.

The research team at J.P. Morgan updates its U.S. Analyst Focus List monthly, as the company describes:

The U.S. Analyst Focus List is updated monthly. Names may be removed mid-month when a valuation target has been largely or wholly achieved, or the original rationale is no longer valid. New ideas can also be added mid-month. Analysts will publish the explanation for all mid-month changes in a research note.

We screened the June Analyst Focus List looking for J.P. Morgan’s top high-yield stock picks, and five of our favorite companies made the list. These picks make sense for growth and income investors looking for top ideas from leading Wall Street firms.

Why do we recommend J.P. Morgan’s Analyst Focus List stocks?

J.P. Morgan is one of the acknowledged leaders in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come.

Annaly Capital

With a massive 13% dividend yield and trading right near the J.P. Morgan target price, this is a total passive-income play. Annaly Capital Management (NYSE:NLY) is a diversified capital manager with investment strategies across mortgage finance.

The company owns a portfolio of real estate-related investments that includes:

• Mortgage pass-through certificates
• Collateralized mortgage obligations
• Credit risk transfer (CRT) securities
• Securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans, and mortgage servicing rights

Its investment groups include:

• Annaly Agency Group, which invests in agency mortgage-backed securities collateralized by residential mortgages
• Annaly Residential Credit Group, which invests in non-agency residential mortgage assets within residential and commercial markets
• Annaly Mortgage Servicing Rights Group, which invests in MSR that grants the right to service residential mortgage loans in exchange for a portion of the interest payments on those loans

The $24 J.P. Morgan price target is likely to go higher.

AT&T

AT&T (NYSE:T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring process while maintaining a solid dividend of 4.52%. Thirteen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support.

AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services. Through its company-owned stores, agents, and third-party retail stores, it sells:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• SecuT
• Cloud solutions
• Outsourcing
• Managed and professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a $33 price target for the stock.

Broadstone Net Lease

With a substantial 5.86% dividend yield and a robust portfolio, this real estate investment trust (REIT) is a compelling investment option, especially given the expectation that interest rates will likely remain where they are indefinitely. Broadstone Net Lease (NYSE:BNL) is an industrial-focused, diversified net lease REIT). The company invests primarily in single-tenant commercial real estate properties that are net leased to a diversified group of tenants on a long-term basis. It is mainly diversified across industrial and retail property types.

Under the industrial property type, it includes

• Manufacturing
• Distribution and warehouse
• Food processing
• Flex
• Research and development
• Cold storage
• Services

Under the retail property type, it includes:

• General merchandise
• Casual dining
• Quick-service restaurants
• Automotive
• Animal services
• Home furnishings
• Healthcare services
• Education

Under Other property type, it includes offices and clinical/surgical facilities.

The company’s portfolio comprises approximately 766 properties, including 759 located in 44 U.S. states and seven in four Canadian provinces.

The J.P. Morgan price target for the stock is $23.

Entergy

This energy company is engaged primarily in electric power production and retail distribution operations in the Deep South of the United States. Entergy (NYSE:ETR) stock makes sense for conservative investors and comes with a dependable 2.36% dividend.

It produces and distributes electricity to 3 million customers in the United States and operates in two segments. The Utility segment generates, transmits, distributes, and sells electric power in the City of New Orleans and in:

• Arkansas
• Louisiana
• Mississippi
• Texas

The company also distributes natural gas.

Entergy’s Wholesale Commodities segment is involved in:

• The ownership, operation, and decommissioning of nuclear power plants located in the northern United States
• Sale of electric power to wholesale customers
• Provision of services to other nuclear power plant owners
• Ownership of interests in non-nuclear power plants that sell electric power to wholesale customers

The company generates electricity from various sources, including gas, nuclear, coal, hydro, and solar. It sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies.

Its power plants have approximately 24,000 megawatts (MW) of electric generating capacity, which includes 5,000 MW of nuclear power.

The J.P. Morgan price target for the shares is $129.

McCormick

Any cook is familiar with this company’s products, and investors also enjoy a tasty 3.93% dividend. McCormick (NYSE:MKC) manufactures, markets, and distributes herbs, spices, seasonings, condiments, and flavors to the entire food and beverage industry, including retailers, food manufacturers, and foodservice businesses.

It operates through two segments. The Consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the McCormick brand and a variety of brands around the world, including:

• French’s
• Frank’s RedHot
• Lawry’s
• Zatarain’s
• Simply Asia
• Thai Kitchen
• Ducros
• Vahine
• Cholula
• Schwartz
• Club House
• Kamis
• DaQiao
• La Drogheria
• Stubb’s
• OLD BAY
• Gourmet Garden

Its Flavor Solutions segment provides a range of products to multinational food manufacturers and foodservice customers. Foodservice customers are supplied with branded, packaged products, both directly by the company and indirectly through distributors.

J.P. Morgan has a $64 target price for the shares.

The post JP Morgan’s Analyst Focus List for June Has 5 Top Passive Income Dividend Picks appeared first on 24/7 Wall St..

A combined household income of $110,000 is close to the national norm for a two-earner household. For a 56-year-old couple hoping to retire at age 60 and fund their lifestyle entirely through dividend income, that annual amount becomes the income target their portfolio must replace. The basic calculation is straightforward: divide the desired income by the portfolio’s yield to estimate the capital required. The more challenging decision is determining what level of yield is appropriate.

That choice generally falls into three broad categories, each offering a different balance between current income, preservation of principal, and long-term protection against inflation. With the 10-year Treasury yielding around 4.5%, investors have a meaningful benchmark against which to compare dividend strategies. At the same time, inflation remains an important consideration, underscoring the value of dividend growth alongside initial yield. A portfolio that generates attractive income today may still struggle over time if its distributions fail to keep pace with rising living costs.

The Conservative Tier: 3% to 4% Yield

At a blended 3.5% yield, $110,000 divided by 0.035 equals roughly $3,142,857 in capital. That is the price of buying America’s most reliable dividend franchises.

Johnson & Johnson (NYSE:JNJ) yields about 2.3% after 64 consecutive years of increases and a recent raise to $1.34 quarterly. Procter & Gamble (NYSE:PG) yields 2.9% on the back of 70 consecutive annual increases. PepsiCo (NASDAQ:PEP) yields 3.9% after a recent reset lower in the stock, and Exxon Mobil pays 2.8% with a 40-plus year growth streak.

The tradeoff is capital intensity. You need the most money upfront. In exchange, principal tends to appreciate, payouts grow, and income keeps pace with inflation. Dividends paid by S&P 500 companies have grown at roughly 150% of CPI since 1960, which is the entire case for accepting a lower starting yield.

The Moderate Tier: 5% to 7% Yield

At 6%, $110,000 divided by 0.06 equals roughly $1,833,333. The capital requirement drops by $1.3 million, but the growth profile flattens.

AT&T (NYSE:T) yields 4.5% on a $0.2775 quarterly payout that has stayed flat since the 2022 WarnerMedia spin-off cut it from $0.52. Cash flow is strong: free cash flow covered the dividend 2.38 times in 2025. But shareholders are sitting on a static check four years on, with management prioritizing buybacks over raises.

Verizon (NYSE:VZ) yields 5.8% with a more honest growth track record, recently raising the quarterly to $0.7075. Operating cash flow of $37.1 billion covers the $11.5 billion dividend more than three times over, though a $144 billion debt load consumes capital that could otherwise fund faster raises.

The Aggressive Tier: 8% and Above

At 10%, $110,000 divided by 0.10 equals exactly $1,100,000. This is the math that makes early retirement look possible on a normal nest egg. It is also where the trouble lives.

Altria (NYSE:MO) now yields 5.8%, down from the 7% to 8% range that defined it for years, after the stock ran up 25% over the past year. The dividend remains covered: operating cash flow of $9.29 billion against $6.96 billion in 2025 dividends, a 1.30x ratio. The structural issue is cigarette volume, which declines roughly 5% per year. To reach a true 8% to 10% blended yield, you move beyond names like Altria into business development companies, mortgage REITs, and high-yield bond funds. Capital required is lowest. So is the probability that your income, or your principal, survives the next decade intact.

Why Lower Yields Often Win the Decade

A 3.5% yield growing at 5% per year turns $110,000 into roughly $140,000 of annual income inside five years, with no rebalancing. The same $2.6 million parked in a static 6% payer produces $156,000 in year one and $156,000 in year ten. The dividend grower wins the next thirty years.

For this couple, four years from retirement, that compounding gap is the entire argument for accepting a higher capital target.

What This Couple Should Actually Do

1. Replace spending, not salary. A $110,000 gross income often translates to $75,000 to $85,000 of actual annual spending once payroll taxes, 401(k) contributions, and work-related costs disappear. Recalculating the target on real spending can cut the capital requirement by a quarter.
2. Screen for payout ratios under 65% before yield. Sustainability beats headline yield every time. AT&T’s 2022 cut from $0.52 to $0.2775 erased 47% of annual income for holders who bought for the yield alone.
3. Model the tax bracket. Qualified dividends in a taxable account are taxed at 15% to 20%, well below ordinary income rates. A blended 4.25% yield across 15 dividend aristocrats, held in taxable, often nets more spendable cash than a 6% yield held in a tax-deferred account drawn down at ordinary rates.

The post Can Pure Dividend Stocks Replace a $110,000 Dual-Income Household Income? Here’s What It Would Take appeared first on 24/7 Wall St..

Holding a high-yield dividend portfolio in a taxable account at the 24% federal bracket means writing the IRS a $14,400 check every year on $60,000 of income that should have been yours. It repeats annually, forever, on the same dollars you already earned.

This series exists because most readers know what a Roth IRA is but have never run the actual dollar delta on the specific high-yield names they own. The basket below is built from ten tickers that pay mostly ordinary-income distributions, which is exactly where Roth placement matters most.

The Tax Delta: Roth Versus Taxable on a $60,000 Income Portfolio

Assume a roughly $1 million portfolio split evenly across ten high-yield names. Current yields pulled from each company’s most recent dividend declarations:

Ares Capital declared $0.48 quarterly, Main Street pays $0.26 monthly plus a $0.30 quarterly supplemental, and EPD distributes $0.55 per unit quarterly. Blended together the basket produces roughly $60,000 in gross annual income on $1 million invested.

Inside a Roth, that $60,000 lands in the account untouched. In a taxable account at the 24% bracket, $14,400 leaves for the IRS and the investor nets $45,600. Over a flat 10 years with no growth assumed, that is $144,000 of permanent tax cost.

The Bracket Multiplier

The Roth advantage scales directly with marginal rate. Same basket, same $60,000 gross, different bracket:

State income tax is not included. Add it on top and the gap widens further.

Why These Names Specifically

Most S&P 500 dividends are qualified and taxed at preferential rates. The basket above is different. BDCs like Ares Capital and Main Street Capital are required to distribute substantially all taxable income to shareholders, taxed at ordinary rates. REIT dividends from Realty Income are characterized as ordinary income. JEPI’s covered-call premium income flows through as non-qualified. AT&T’s distribution is treated as ordinary income for many holders.

Even qualified payers like Altria, with a $1.06 quarterly dividend, and AbbVie at $1.73 per quarter, generate enough yield that the tax drag in a taxable account is meaningful.

The Compounding Cost Most Readers Miss

The Roth advantage compounds well beyond the annual delta. Reinvest the $14,400 tax savings each year at a conservative 5% 10-year Treasury yield and the gap widens with every passing year. Over 20 years of reinvestment, the same basket inside a Roth versus a taxable account at the 24% bracket produces a six-figure income gap, with no stock price appreciation assumed. That is the permanent cost of wrong-account placement.

Risks and Caveats

• BDC distributions vary with credit cycles. Ares Capital’s Q1 2026 core EPS of $0.47 came in just below its $0.48 dividend, though $0.15 per share in net realized gains brought total coverage well above the distribution. The gap between core EPS and the dividend is a trend worth monitoring as rates compress NII. Non-accruals rose to 2.1% in Q1 2026 from 1.8% at year-end 2025.
• EPD issues a K-1 with UBTI considerations inside an IRA depending on custodian and ownership levels.
• JEPI’s covered-call overlay caps upside in strong equity rallies.
• This is general education on placement of existing Roth dollars, not personal tax advice.

What to Do

1. If you hold any BDC, REIT, or covered-call ETF in a taxable account, calculate the annual tax cost at your bracket before next April.
2. Run the conversion math on ordinary-income payers first. They benefit more from Roth placement than qualified-dividend names.
3. Model a phased Roth conversion starting with ARCC, MAIN, O, and JEPI before touching qualified payers.

The post The Dividend Stocks That Generate $60,000 Tax-Free Inside a Roth (And What They Cost You in a Taxable Account) appeared first on 24/7 Wall St..

Replacing a real paycheck with dividends is the cleanest version of financial independence. The income target here is $65,000 per year, roughly the US median individual wage, and the question is whether a $650,000 portfolio can actually produce it. The honest answer up front: only by reaching past pure blue chips into higher-yield categories. Here is what that looks like at three yield tiers, using verified current yields on real, named stocks.

The Core Math

Income target divided by yield equals capital required. To pull $65,000 a year:

• At a 3% blended yield, capital required is roughly $2.17 million.
• At a 6% blended yield, capital required is roughly $1.08 million.
• At a 10% blended yield, capital required is roughly $650,000.

The headline number only works at the aggressive end. That is the tradeoff the rest of this article makes concrete.

Conservative Tier: 2% to 3% Yield

These are the sleep-at-night anchors. Coca-Cola (NYSE:KO) yields 3% with a Q2 2026 dividend of $0.53 and a streak of consecutive annual raises stretching back decades. Johnson & Johnson (NYSE:JNJ) yields 2% after raising its quarterly to $1.34, its 64th consecutive year of increases. Procter & Gamble (NYSE:PG) yields 3% with payments that have continued for over 130 years. AbbVie (NYSE:ABBV) yields 3% with a recently raised $1.73 quarterly payout backed by 1.53x EPS coverage. Exxon Mobil (NYSE:XOM) yields 2% at a current dividend of $1.03 per quarter.

Filling a $650,000 portfolio with names like these produces a blended yield in the 3% range, generating roughly $19,500 a year. Quality and dividend growth compound over time, but the starting income is well below a real salary.

Moderate Tier: 4% to 6% Yield

Altria (NYSE:MO) yields 6% with 2026 EPS guidance of $5.56 to $5.72 against a $4.24 annualized payout. Verizon (NYSE:VZ) yields 6% after raising its quarterly to $0.7075. British American Tobacco (NYSE:BTI) yields 5%. AT&T (NYSE:T) yields 4% at a stable $1.11 annualized rate. Realty Income (NYSE:O) yields 5% and just declared its 114th consecutive quarterly increase and 670th consecutive monthly dividend. Enterprise Products Partners (NYSE:EPD) pays $0.55 quarterly ($2.20 annualized) after a 3% increase, with last quarter’s distribution covered by $2.7 billion of DCF.

This tier pushes the blended portfolio yield closer to 5% or 6%, but dividend growth here generally trails the conservative tier. EPD also issues a K-1, which complicates tax filing for many investors.

Aggressive Tier: 8% to 10% Yield

Main Street Capital (NYSE:MAIN) pays a monthly $0.26 plus a $0.30 quarterly supplemental, now its 19th consecutive. Ares Capital (NASDAQ:ARCC) yields 10% at a $0.48 quarterly rate, although Q1 2026 core EPS of $0.47 came in $0.01 short of the dividend for the first time recently.

A $650,000 portfolio loaded entirely into 8% to 10% yielders gets you to the $65,000 line. The cost is real: BDC dividends can be cut and the 10-year Treasury yielding 5% sets a competitive risk-free benchmark.

The Insight Most Readers Miss

A 3% yielder growing the dividend 8% a year roughly doubles the income in nine years. A 10% yielder with a frozen or shrinking payout may produce less income a decade out than the lower-yield blue chip that compounded quietly. KO has lifted its quarterly from $0.485 in 2024 to $0.53 in 2026. AT&T’s dividend has sat at $0.2775 per quarter since 2022. Same headline of “dividend payer,” very different futures.

What To Do

• Pull the live yield on each name before sizing positions. Yields move with price, and several of these stocks have rallied sharply (XOM is up 54% over one year).
• Model what a 25% cut from your highest-yield holding does to monthly income before building around it. ARCC’s $0.01 coverage shortfall is the kind of signal to watch.
• If you are within five years of needing this income, separate the K-1 filers (EPD) and non-qualified dividend payers (REITs, BDCs) from your taxable account plan.

A $650,000 dividend portfolio paying a real salary is possible. It just requires owning the tradeoffs as clearly as you own the shares.

The post The Dividend Stocks That Can Replace a $65,000 Income and What They’ll Cost You appeared first on 24/7 Wall St..

NVIDIA (NASDAQ:NVDA) is the stock everyone is talking about, riding a $5.34 trillion market cap on the back of an AI capex wave that has lifted shares 62.77% over the past year.

The contrarian case against NVIDIA writes itself. The stock trades at a trailing P/E of 45 and a price-to-sales ratio of 25, levels that demand flawless execution from a company already guiding Q1 FY2027 revenue near $78 billion while explicitly excluding any China data center compute revenue. Management has flagged $95.2 billion in supply-related commitments and another $27 billion in multi-year cloud service agreements, locking in costs regardless of demand. Data Center now accounts for 91.5% of revenue, hyperscaler concentration sits near 50%, and starting next quarter NVIDIA folds stock-based comp into its non-GAAP results, muddying year-over-year comparability.

Prediction markets agree the easy money has been made. Polymarket traders assign just a 17% chance NVIDIA closes above $240 by week’s end and a 6.5% chance above $230 on earnings day. The crowd is pricing exhaustion, not a breakout. Semiconductor history is consistent on what follows extreme demand spikes: inventory normalization and supply gluts, and the kind of margin compression that humbles consensus darlings.

Now turn to AT&T (NYSE:T), the beaten-down high-yield leader the headlines have forgotten. Shares are down 6.96% over the past year, trading at $24.98 with a P/E of 8, forward P/E of 11, and a defensive beta of 0.42 against NVIDIA’s 2.24.

1. A retirement income story with real commitment

AT&T pays a $0.2775 quarterly dividend, $1.11 annualized, held steady for 18 consecutive quarters and explicitly committed through 2028. That equates to a 4.62% yield. CEO John Stankey is backing it with roughly $8 billion in 2026 share buybacks and a $45 billion-plus total shareholder return plan through 2028. That is exactly what a retirement portfolio needs.

2. Operational momentum the market is mispricing

Q1 2026 brought adjusted EPS of $0.57, up 11.8% year over year, revenue of $31.51 billion, and 584,000 internet net adds. Advanced home internet revenue grew 27.3%, and nearly 45% of those subscribers also carry AT&T wireless. The Lumen Mass Markets fiber acquisition closed February 2, 2026, and fiber now reaches over 37 million locations. Stankey called it “our best first quarter ever for Advanced Connectivity internet customer net additions.”

3. Visible cash flow growth and unified insider buying

Free cash flow is guided at $18 billion-plus in 2026, $19 billion-plus in 2027, and $21 billion-plus by 2028, underpinning a double-digit adjusted EPS CAGR through 2028. On April 30, 2026, CEO Stankey, CFO Pascal Desroches, COO Jeff McElfresh, and 11 directors bought shares together at $26.13. Desroches alone added 121,297 shares in March at $28.99. That is unified C-suite conviction with personal capital on the line.

Wall Street is positioned the wrong way around: 15 of 25 covering analysts rate AT&T a Buy or Strong Buy with an average target of $30.37, while NVIDIA is universally owned and priced for an AI cycle that never deflates. For patient retirement investors, AT&T looks attractively positioned while the crowd is still distracted by the headline ticker.

The post Forget Nvidia: This Beaten-Down High-Yield Leader Is a Far Smarter Buy for Patient Investors appeared first on 24/7 Wall St..

With Treasury yields sliding and the broader market trading near record highs, retail investors hunting for reliable passive income are getting squeezed. That makes brand-name dividend payers trading under $40 a share unusually interesting right now: you get household-name stability, room to compound shares, and yields that comfortably top what a savings account is paying. A $5,000 starter position in each of the three names below puts roughly $15,000 to work and turns into a meaningful quarterly paycheck.

With that in mind, here are three blue-chip dividend stocks trading under $40 that income investors should have on their radar today.

AT&T (NYSE: T)

AT&T (NYSE:T) is the converged telecom giant pairing nationwide 5G wireless with one of the fastest-growing fiber footprints in the country. At $24.98, a $5,000 allocation buys roughly 200 shares, an accessible entry point for almost any retail portfolio.

The fundamentals back up the income thesis. Q1 2026 adjusted EPS came in at $0.57, up 11.8% year over year, on revenue of $31.51 billion, while management guided 2026 adjusted EPS to $2.25 to $2.35 with free cash flow above $18 billion. The quarterly dividend sits at $0.2775, or $1.11 annualized, a payout AT&T has held steady for eight straight quarters and has committed to maintain through 2028. That works out to roughly a roughly 4.4% yield, or about about $222 a year on a $5,000 stake.

The bull case is simple: 584,000 fiber net adds in Q1, a path to 60 million fiber locations by 2030, and $8 billion in buybacks planned for 2026. The clear risk is the balance sheet: $138.4 billion in total debt and net debt/EBITDA of 2.71x leave little margin for error. For income investors who can stomach that, AT&T remains a credible long-duration paycheck.

Kinder Morgan (NYSE: KMI)

Kinder Morgan (NYSE:KMI) operates the largest natural gas pipeline network in the United States, a toll-road business model that throws off remarkably steady cash. Shares trade at $34.31, up 27.2% year to date, so a $5,000 stake gets you roughly 145 shares.

Q4 2025 adjusted EPS of $0.39 beat the $0.37 consensus, capping a year of 12.4% revenue growth and a 17% jump in net income. Management is guiding 2026 adjusted EPS to $1.36 and just raised the dividend target to $1.19 per share, a 2% bump. At the current price that is roughly a roughly 3.4% yield, or about about $170 a year on $5,000.

The bull case is structural. Kinder Morgan touches roughly 70% of the markets driving future data-center power demand, carries a $10 billion project backlog, and just earned an S&P upgrade to BBB+ in January 2026. The risk is leverage of 3.8x net debt to EBITDA and permit timing on new builds. For investors who want infrastructure-grade dividend income tied to the AI power buildout, KMI fits the bill.

KeyCorp (NYSE: KEY)

KeyCorp (NYSE:KEY) is the Cleveland-based regional bank behind KeyBank and KeyBanc Capital Markets. At $20.92, a $5,000 investment buys roughly 239 shares, the largest share count of the three.

Q1 2026 EPS of $0.44 beat the $0.41 estimate and grew 33% year over year, with net interest margin expanding 29 basis points to 2.87%. Tangible book value per share rose 18% YoY to $13.77, and management is targeting $1.30 billion or more in buybacks for 2026. The $0.205 quarterly dividend, or $0.82 annualized, yields about roughly 3.9%, generating roughly roughly $196 a year on $5,000.

The bull case is leverage to a steeper yield curve, with KeyCorp guiding 2026 revenue up around 7% and net interest income up 9% to 10%. The risk is credit: nonperforming assets ticked up to 63 basis points from 59, and consumer loan balances are still shrinking. For investors comfortable owning a regional bank, KeyCorp offers a strong yield plus capital return.

Each of these names carries real business risk, and a high yield can mask balance-sheet stress if you do not look closely. Use this list as a starting point for your own research into payout coverage, debt loads, and sector outlook before putting $5,000 to work.

The post Want Super Safe Dividend Income? Invest $5k Into These 3 Under $40 Stocks appeared first on 24/7 Wall St..

Leaving behind a $135,000 senior software engineer salary at age 52 may sound straightforward until the income-replacement math becomes real. Because most retirement accounts remain difficult or costly to access before age 59½, the burden shifts heavily toward taxable brokerage assets. That constraint changes both the structure of the portfolio and the amount of capital required to make early retirement sustainable.

The core equation is simple but demanding: target income divided by portfolio yield equals the capital needed to generate that income. The chosen yield level dramatically affects the outcome. A conservative portfolio yielding around 3.5% may require more than $3.8 million to replace a $135,000 salary, while a higher-yield strategy near 12% could reduce the required capital closer to $1.1 million. Those differences come with substantial tradeoffs in growth potential, principal stability, dividend durability, and long-term purchasing power.

The Conservative Math: 3% to 4% Yields

At a 3.5% blended yield typical of broad dividend-equity funds, $135,000 in annual income requires roughly $3.86 million in capital. At 4%, it drops to $3.38 million. That is the price of safety.

Funds in this tier, Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) being the archetype, lean on diversified large-cap dividend growers. SCHD charges a 0.06% expense ratio and holds names like Bristol-Myers Squibb, Merck, Chevron, and Verizon. The fund has returned 237% over the past decade, which is the conservative tier’s real argument: lower current yield, but the principal grows and the distribution grows with it.

The catch at 52? You need almost $4 million sitting in a taxable account. Most FAANG engineers, even after a decade of vesting, are not there.

The Moderate Math: 5% to 7% Yields

This is where the realistic plan lives. At 5.5% sustainable yield, $135,000 needs roughly $2.45 million in taxable assets. At 6%, about $2,250,000. At 7%, roughly $1,928,571.

Three real-world anchors sit in this band:

1. Realty Income (NYSE:O), the monthly-dividend REIT, currently yields 5.2% at around $62. It has paid 670 consecutive monthly dividends and just raised for the 114th straight quarter, with $0.2705 in April 2026 up from $0.264 a year earlier.
2. Verizon (NYSE:VZ) yields 6.0% at roughly $47, with quarterly payments lifted to $0.7075 in Q2 2026. It trades at 11x earnings, with a defensible cash flow profile.
3. AT&T (NYSE:T) yields 4.6% at roughly $25, paying $0.2775 quarterly. The dividend has been flat for eight quarters following the 2022 cut from $0.52, a reminder that high telecom yield can coexist with stagnant dividend growth.

A blended 5.5% portfolio (roughly 30% dividend-growth ETFs, 25% broad dividend equity, 15% Realty Income, 15% covered-call income fund, 15% telecom blend) produces the $135,000 target on $2.45 million. After qualified-dividend tax of 15% to 20%, the net lands near $115,000, which is likely more than this engineer’s actual post-tax take-home today.

The Aggressive Math: 8% to 12% Yields

At 8%, the requirement falls to about $1.69 million. At 10%, $1.35 million. At 12%, just $1.13 million. The vehicles here are covered-call ETFs, business development companies, mortgage REITs, and high-yield credit funds.

Two problems stack at 52. First, most covered-call distributions are ordinary income, not qualified, which wrecks the tax math in a taxable account. Second, double-digit yields without dividend growth lose ground to inflation across a 30-year horizon. With the 10-year Treasury at 4.6%, a 12% yield is paying you roughly 7 points of compensation for credit, prepayment, and principal-erosion risk.

The Compounding Trap Most People Miss

A 3.5% yield growing at 8% annually can double its income stream in roughly nine years. By contrast, a flat 10% yield may maintain its payout rate for a time, but the underlying principal often declines over the long run. Over the 13 years between age 52 and a traditional retirement age of 65, a lower-yield portfolio with consistent dividend growth can ultimately produce more cumulative income while preserving far more capital.

Realty Income offers a good example of the middle-ground approach. Its dividend growth rate has averaged roughly 2.9% annually on top of a starting yield above 5%. That combination may appear less exciting than double-digit yields at first glance, but the gradual growth compounds over time and can materially strengthen long-term income durability.

Three Things to Do Before You Quit

1. Pull your actual annual spending, not your $135,000 gross. After payroll taxes, 401(k) contributions, and commuting, the replacement number is often $90K to $105K.
2. Run a 10-year total-return comparison between a dividend-growth ETF and a 10% covered-call fund. Reinvest distributions in both. The chart usually settles the debate.
3. Model the 0% long-term capital gains bracket up to $48,350 for single filers in 2026 and the 15% bracket above it. Qualified-dividend treatment can mean keeping nearly all of the moderate-tier income; a tool like SmartAsset’s calculator gets you a quick estimate before you talk to a CPA.

The Real Goal Is Staying Retired

The seductive part of high-yield investing is how quickly the required capital falls. At 12%, the dream suddenly looks reachable. But early retirement at 52 is not about producing income for one good year. It is about building an income stream durable enough to survive recessions, inflation, dividend cuts, and another three decades of life.

That reality pushes most sustainable plans toward the middle. Moderate-yield portfolios may require more upfront capital, but they usually offer a healthier balance between current income, dividend growth, tax efficiency, and principal preservation. A portfolio that grows its income slowly over time often ends up providing more financial security than one chasing the highest payout available today. The real challenge is not escaping work. It is constructing a portfolio that still works long after the excitement of leaving fades.

The post How Much Do You Really Need Invested to Replace a $135,000 Tech Salary Without Touching Principal at 52? appeared first on 24/7 Wall St..

AT&T (NYSE:T) and Verizon Communications (NYSE:VZ) both posted 2.9% revenue growth in Q1 2026, yet the businesses behind those identical top lines look very different.

AT&T is digesting the Lumen fiber acquisition that closed in early February 2026, while Verizon is now run by Daniel Schulman and absorbing Frontier, which closed January 20, 2026. Two convergence stories, two very different execution styles.

Fiber Sprints for AT&T, Phones Finally Click for Verizon

AT&T leaned hard on broadband. The quarter brought 584,000 advanced connectivity net adds, the company’s best Q1 ever, with advanced home internet revenue up 27.3% year over year. Adjusted EPS landed at $0.57, up nearly 12%, on revenue of $31.51B.

CEO John Stankey framed the strategy plainly: “fiber and 5G all from one provider on the nation’s largest advanced converged network.” The catch is capex. AT&T spent $5.1 billion in the quarter, squeezing free cash flow to $2.5 billion.

Verizon’s headline was retention. Postpaid phone net adds came in at 55,000, the first positive Q1 in 13 years, and adjusted EBITDA hit $13.4 billion, up 6.7%. Adjusted EPS of $1.28 beat the $1.21 consensus by 5.8%.

Schulman is unapologetic about the new tone: “We will not rely on empty across-the-board price increases that create short-term financial gains that erode the long-term trust of our customers.” Management raised full-year EPS growth guidance to 5% to 6%.

Builder vs. Fixer-Upper

Stankey is pouring capital into the ground. Verizon is pouring it into churn reduction. Schulman cited cost of acquisition and retention down roughly 35% since December, with consumer postpaid churn at 0.90% and trending lower.

AT&T’s organic convergence rate of 45% is the more structural metric, but the EchoStar spectrum deal will push net debt to EBITDA to roughly 3.2x before settling.

The Next Test Is Cash Flow

I will be watching whether AT&T can hold its $18B+ free cash flow guide while funding fiber and integrating Lumen. The Q1 FCF dip is explainable, but investors are clearly nervous. The stock fell 4.5% last week, with Stankey’s May 19 J.P. Morgan conference appearance looming as a credibility checkpoint.

For Verizon, the watchpoint is whether the $5 billion 2026 OpEx savings target actually flows through, and whether the Frontier integration produces the promised $1 billion+ run-rate synergies by 2028.

Where Verizon’s Story Looks Cleaner Right Now

Between these two, Verizon’s setup looks cleaner today. The 5.88% yield, 20th consecutive dividend increase, raised EPS guide, and 17.7% YTD return tell a coherent story of operational momentum at a cheap multiple. Schulman’s micro-segmentation pitch sounds repeatable in a way that promotional carpet-bombing never was.

AT&T may offer more long-term torque if the fiber math works out, and the 8x trailing P/E bakes in real skepticism. AT&T offers more long-term torque if the fiber math works out, paired with execution risk and elevated leverage. Verizon’s quarter, by contrast, was operationally cleaner with fewer surprises.

The post AT&T vs Verizon. One of These Telecoms Has Raised Its Dividend 20 Straight Times and the Market Is Finally Noticing appeared first on 24/7 Wall St..

With markets at elevated multiples in May 2026, low share prices can mislead investors into thinking quality is out of reach. Stocks trading below $30 with strong balance sheets offer income, deleveraging stories, or growth at valuations that build in a margin of safety.

Here are five stocks trading under $30 that pair solid books with a credible upside case.

Pfizer (NYSE: PFE)

Pfizer (NYSE:PFE) is a global biopharma whose portfolio spans immunology, oncology, cardiology, and vaccines, anchored by Eliquis, Prevnar, and the Comirnaty/Paxlovid COVID franchise.

Shares last traded at $25.33, below the 52-week high of $28.28, with a 6.68% dividend yield and a forward P/E of 9x. Q4 2025 adjusted EPS of $0.66 beat the $0.57 estimate, and the consensus analyst target sits at $29.19.

The bull case rests on 9% operational lift in the non-COVID portfolio, the Metsera-driven obesity pipeline, and insider conviction: CEO Albert Bourla and 11 directors acquired phantom stock units at $26.67 on April 23, 2026.

Key risk is a $1.5B revenue headwind from 2026 loss of exclusivity combined with MFN drug pricing pressure. The yield-supported setup has management backing the thesis.

AT&T (NYSE: T)

AT&T (NYSE:T) is the second-largest US wireless carrier, pairing 5G with a rapidly expanding fiber footprint.

At $24.43, shares carry a forward P/E of 11x and a 4.5% dividend yield. Q1 2026 adjusted EPS came in at $0.57 (+11.8% YoY) on revenue of $31.51B. Analyst target: $30.37.

The bull case is execution and cash. AT&T added 584,000 internet customers in Q1 2026, plans $45B in shareholder returns through 2028, and lifted cash to $18.2B at year-end 2025 from $3.3B a year earlier.

Risks include total debt of $173.99B and legacy wireline declines exceeding 20% in 2026. Converged connectivity plus growing free cash flow makes the dividend durable.

SoFi Technologies (NASDAQ: SOFI)

SoFi Technologies (NASDAQ:SOFI) is a digital financial services company holding a national bank charter and the Galileo technology platform.

At $15.71, shares are down 39.99% YTD, even after Q1 2026 produced net income of $166.7M (+134% YoY) and record originations of $12.18B (+68% YoY). Forward P/E is 26x; analyst target $21.10.

The bull case: shareholder equity reached $10.81B while total debt fell from $3.2B to $1.8B over the prior year. CEO Anthony Noto bought 15,545 shares at $16.00 on May 11, 2026 after purchasing 56,000 shares at $17.88 on March 2, 2026.

Risks include personal loan charge-offs at 3.03% and a 27% decline in Technology Platform revenue after a large client departure. The pullback has reset expectations into the growth runway.

Kinross Gold (NYSE: KGC)

Kinross Gold (NYSE:KGC) operates gold mines across the US, Brazil, Chile, and Mauritania.

Shares slipped under $30 to $28.51 after an 18.4% one-month pullback, even as the stock remains up 109.22% over one year. Forward P/E sits at 11x against an analyst target of $40.55. Q1 2026 adjusted EPS hit $0.71 on revenue of $2.41B (+61% YoY), with free cash flow of $837.5M.

The balance sheet is pristine: $2.19B in cash against only $3.66B in total liabilities, plus record 2025 FCF of $2.47B and $255.1M of Q1 buybacks.

Primary risk is gold price volatility and geopolitical exposure. The recent pullback creates a window for investors seeking operating leverage to bullion.

KeyCorp (NYSE: KEY)

KeyCorp (NYSE:KEY) is a Cleveland-based regional bank serving consumer and commercial clients alongside KeyBanc Capital Markets.

At $21.07, KEY trades at a forward P/E of 12x with a 3.89% dividend yield. Q1 2026 EPS of $0.44 beat the $0.4073 estimate, NIM expanded 29 basis points YoY to 2.87%, and ROTCE topped 13%. Analyst target: $24.97.

Management raised 2026 net interest income guidance to 9-10%, plans $1.3B+ in buybacks, and targets 15%+ ROTCE by year-end 2027.

Watch item: nonperforming assets ticked up to 63 bps from 59 bps. A rising-margin franchise returning capital at scale supports the thesis here.

Bottom Line

A share price below $30 is no substitute for diligence. Each name carries identifiable risks alongside balance sheet strengths. Investors should size positions to their risk tolerance and verify the latest disclosures before acting.

The post The SoFi CEO Just Bought 70,000 Shares With His Own Money. Here Are Four More Under $30 Worth a Closer Look appeared first on 24/7 Wall St..

The Pacer US Cash Cows 100 ETF (NYSEARCA:COWZ) and the Fundstrat Granny Shots US Large Cap ETF (NYSEARCA:GRNY) sit on opposite ends of how quality gets defined in a large-cap portfolio. COWZ ranks the Russell 1000 by free cash flow yield and takes the top 100 names, a rules-based screen with no human override. GRNY is Tom Lee’s actively managed expression of stocks that show up in multiple Fundstrat thematic baskets, a conviction screen built on analyst overlap. The strategies should produce sharply different portfolios. The trailing 12-month returns show why they have not.

What each fund is actually betting on

COWZ buys companies whose current cash generation looks cheap relative to enterprise value. That bet leans into mature, capital-returning businesses. The fund’s top sector weights are Health Care at 22.01%, Information Technology at 18.47%, and Energy at 16.06%, with ConocoPhillips at a 2.25% top position and Qualcomm at 1.99%. Pfizer, AT&T, Verizon, and Altria round out the cash-rich roster.

GRNY bets that stocks sitting at the intersection of several long-duration themes (AI, electrification, energy security, millennial spending) will compound faster than the index. That tilts the portfolio toward names like NVIDIA and GE Vernova, which would never clear a strict FCF-yield screen. NVIDIA trades at a trailing PE of 46; GE Vernova at a trailing PE of 31.

Where the difference shows up, and where it doesn’t

Over the past year, GRNY returned 29.35% versus COWZ at 17.84%, with the S&P 500 at 26.49%. ConocoPhillips is up 27.29% YTD, Qualcomm up 25.43% YTD, and GE Vernova up 62.8% YTD. Qualcomm shows up in both funds. The cash-flow screen and the conviction screen are arriving at some of the same names through different doors, which is why the divergence is narrower than the methodologies suggest.

The March 2026 volatility spike (VIX peaked at 31.05 on March 27) favored GRNY’s thematic conviction. The current VIX of 17.99 and elevated 10-year Treasury at 4.46% normally favor COWZ-style near-term cash.

The practical comparison

The verdict

COWZ fits an investor who wants a transparent, low-turnover way to own the cheapest cash generators in the Russell 1000 and is willing to underweight the AI complex to get it. GRNY fits an investor who trusts active thematic conviction and wants exposure to NVIDIA and GE Vernova that an FCF screen will never buy at current valuations. If oil holds above $100 and rates stay near 4.5%, COWZ catches up quickly. If AI capex and electrification orders keep compounding, GRNY keeps its lead.

The post GRNY Beat COWZ by 11 Points This Year. Oil Prices and Interest Rates Will Decide Who Wins Next appeared first on 24/7 Wall St..

CounterPoint, the well-regarded electronics research firm, shows that, study after study, in China, the US, and globally, sales of the iPhone continue to outpace those of all competitors. The most recent data comes from a survey of smartphone buyers from the major wireless carriers.

The carriers include Verizon (NYSE: VZ), AT&T (NYSE: T), and T-Mobile. It is based on CounterPoint’s US Monthly Smartphone Channel Share Tracker. The figures cover the first quarter of the year.

Apple’s (NASDAQ: AAPL) share of sales among the “Big Three” was 75% in the first quarter of this year, compared with 72% for the same period a year ago. Any competition of consequence came from Samsung, which launched its Galaxy S26 late in the quarter, and Motorola.

This news is particularly bad for Google. It has hoped its Android OS would best the iOS that runs the iPhone. In some countries around the world, Android does well, but not in the US. Counterpoint pointed out that “Apple’s share of volume grew by 4% YoY, as Android device sales declined 14.4% YoY.” The late introduction of the Galaxy S26 would not have helped the Android figures.

Ultimately, however, the figures show the extent to which Apple’s lead cannot be dented. This is important to its earnings. In the quarter that ended March 28, iPhone sales in the “Americas” rose to $45.1 billion from $40.3 billion in the same quarter the year before. And “Americas” sales are 41% of the iPhone total.

Less than a year ago, there was anxiety among investors that the launch of the iPhone 17 without advanced AI features would undermine success. That did not happen, even though the situation persisted through early 2026 and will continue until after mid-year. At that point, Apple will team up with Google to upgrade Apple Intelligence and Siri. Apple will have dodged the massive costs to get an edge in AI data centers.

So far, the market has cheered Apple’s decision on AI. Its shares recently hit an all-time high. Yahoo reported yesterday that “Apple stock closed at a record high on Wednesday as tech stocks rebounded from a sell-off the previous day.” At $300, it is up 40% in the last year, compared to 27% for the S&P. That makes it the third most valuable company in the world with a market cap of $4.4 billion. And most of that run-up is on the back of the success of the iPhone.

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AST SpaceMobile (NASDAQ:ASTS) has been continuously surging. A satellite unfolds in orbit, a regulator signs off, a carrier signs a contract, and investors keep going back to the buy button. The stock has handed a 161% gain over the last year and the position still feels early, which is evidence that the market has not finished pricing in what this company is building.

ASTS stock is down significantly from its peak, but the momentum is there and it has recovered in earnest from every downturn in the past.

What the company is building

A cell tower floating in low Earth orbit that talks directly to the phone in your pocket. It works without a satellite phone or a special antenna. The phone you bought from Verizon (NYSE:VZ), working in the middle of nowhere, at broadband speeds. If that vision compiles into reality, the addressable market is the roughly 5 billion mobile subscribers globally who live with connectivity gaps. The partner roster reads like the global carrier rolodex, with over 50 mobile network operators representing nearly 3 billion subscribers, including Verizon, AT&T (NYSE:T), Vodafone, Rakuten, Orange, Telefonica, and stc Group.

The contracted backlog is already in the door

AST SpaceMobile has $1.2 billion in aggregate contracted partner commitments, a $175 million prepayment already in the door from stc Group on a 10-year regional agreement, eight U.S. Government contracts including a prime position on the Missile Defense Agency SHIELD Program and a $30 million Space Development Agency prime contract.

Moreover, Q4 2025 revenue came in at $54.30 million, a 28.56% beat against the $42,241,500 consensus, with year-over-year growth of 2,731.3%. That is the first quarter where the income statement started looking like a real business.

The moat is the spectrum and the carriers

The second reason is the moat, which lives in spectrum and carrier contracts rather than in the satellites themselves. AST holds 1,150 MHz of low and mid-band tunable MNO spectrum globally, 45 MHz of MSS mid-band in North America, and 60 MHz of S-band priority rights globally, sitting behind over 3,700 patent and patent pending claims. Manufacturing footprint now sits above 500,000 square feet across multiple sites at 95% vertical integration. Competitors can launch satellites. Recreating the global spectrum portfolio and the definitive carrier deals is the part that does not bend to capital.

The balance sheet pays for the plan

The third reason is the balance sheet. Cash and equivalents ended Q4 at $2.34 billion, and pro forma liquidity after the $1.07 billion convertible notes offering exceeds $3.9 billion. Capital expenditures hit $1.06 billion in the quarter. The plan is 45 to 60 satellites in orbit by year-end 2026 at a launch cadence of every one to two months. They have the money to do that.

The risk I am willing to underwrite

FY2025 net loss came in at $341.94 million. Q2 2025 revenue missed by 95.29%, Q3 missed by 33.13%, and BlueBird 7 was placed into a lower-than-planned orbit in April. Hiroshi Mikitani, a 10% owner, disposed of 3,040,000 shares across two days in April at $86.22 and $91.42. The stock has put together five 40-55% drawdowns since January 2025. Every one of those reservations is fair. The thesis still holds because space-based reliable internet connections to unmodified phones is a utility once it works, and the company that controls the spectrum and the carrier deals captures it. Mikitani trimming at $90 does not unspectrum the company.

Why the buy button stays active

AT&T and Verizon trade like mature utilities because they sell connectivity where copper and fiber already run. AST is selling connectivity where neither does, to the same phones, through the same carriers, on premium global spectrum it already controls. At a market cap of roughly $27.8 billion against carriers measured in hundreds of billions, the math for a 5x outcome is a plausible re-rating.

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Two Aristocrats That Stumbled Off the Pedestal

For decades, AT&T (NYSE: T) and 3M (NYSE: MMM) were the kind of stocks retirees built portfolios around. Both raised dividends every year for decades. Both lost their crowns through messy corporate breakups.

AT&T’s media detour ended badly. After buying DirecTV and Time Warner, the company spun WarnerMedia into Warner Bros. Discovery in April 2022 and cut the quarterly dividend from $0.52 to $0.2775, a 46.6% reduction. CEO John Stankey has since refocused AT&T on converged 5G and fiber, closing the Lumen Mass Markets fiber acquisition in February 2026.

3M’s fall was slower and more painful. Mounting liabilities from Combat Arms Earplugs lawsuits and PFAS “forever chemicals” dragged the stock down for years. The April 2024 spin-off of healthcare unit Solventum brought a dividend reset and ended one of the longest aristocrat streaks on record. New CEO William Brown’s 3M eXcellence turnaround has produced four straight EPS beats.

What $1,000 Actually Became

AT&T Total Return

Price-adjusted return. Includes the WarnerMedia spin distribution.

3M Total Return

Price-adjusted return. Includes the Solventum distribution.

Both stocks underperformed the S&P 500 dramatically over a decade. Reinvested dividends would meaningfully improve AT&T’s tally given its long stretch as a high-yielder, but neither comes close to the index. Holding through the 2018 to 2023 grind required patience most investors do not have.

What to Do Today

Putting $1,000 into AT&T today would be the choice for income and stability. The Q1 2026 earnings report — $31.51 billion in revenue and $0.57 adjusted EPS — plus the $45 billion shareholder return commitment through 2028 and a 4.24% yield at an 8 P/E, make this a credible cash-return story. Investors may want to avoid it if rising leverage from the $23 billion EchoStar spectrum deal pushes net debt past management’s comfort zone.

3M looks attractive for investors who trust Brown’s margin expansion, with 2026 guidance of $8.50 to $8.70 adjusted EPS, and PFAS manufacturing finally exited. The residual $10.3 billion PFAS settlement obligations and the risk that Combat Arms tail liabilities turn into fresh charges would be reasons for investors to step away.

The verdict: AT&T’s risk/reward looks tighter and more visible. 3M is the higher-variance bet on an industrial turnaround that is working but not finished. Neither owes long-term holders a comeback, and that is the lesson. Aristocrat status describes the past.

The post A $1,000 Investment in These Former Dividend Aristocrats 10 Years Ago Is Worth How Much Today? appeared first on 24/7 Wall St..

Dividend income keeps flowing whether you are working, sleeping, or on vacation. For investors building a portfolio that pays whether the market is open or closed, high-yield equities offer instant liquidity and zero operational headaches that rental property and private credit cannot match.

With the 10-year Treasury yielding 4.31%, the bar for risk assets in an income portfolio has risen. The five blue-chip dividend payers below all clear that bar, with three clearing it by a wide margin. Each has paid uninterrupted dividends for decades through recessions, rate shocks, and inflation cycles, the consistency income investors demand.

We screened our 24/7 Wall St. dividend equity research database for stocks that pay massive dividends. Combined, these five companies can generate over $2,000 a year in passive annual income on a $10,000 investment in each stock at current prices.

Coca-Cola

• Yield: 2.66%
• Shares for $10,000: 132.56
• Annual Passive Income: $266

Coca-Cola (NYSE:KO) sells concentrate and finished beverages globally under Coca-Cola, Sprite, Fanta, smartwater, BODYARMOR, Powerade, Costa, and fairlife. Shares trade at $75.44, up 8.65% year-to-date, with a trailing P/E near 25.

KO

KO raised its quarterly payout to $0.53 in Q1 2026, marking the 63rd consecutive annual increase and cementing Dividend King status. Full-year 2025 dividends totaled $8.8 billion. Institutions own 66.6% of shares, with Berkshire Hathaway, Vanguard, and BlackRock among the largest holders.

Procter & Gamble

• Yield: 2.85%
• Shares for $10,000: 67.39
• Annual Passive Income: $285

P&G (NYSE:PG) owns Tide, Pampers, Gillette, Crest, Olay, and Charmin across consumer staples. Fiscal Q3 2026 revenue rose 7.4% year-over-year, with management planning roughly $10 billion in dividends and $5 billion in buybacks for FY26.

PG raised its quarterly dividend to $1.088 with the April 24, 2026 ex-date, extending the 70th consecutive annual increase and the longest U.S. payment streak at 136 years since 1890.

AT&T

• Yield: 4.17%
• Shares for $10,000: 391.85
• Annual Passive Income: $417

AT&T (NYSE:T) operates Mobility, Consumer Wireline, and Business Wireline. Q1 2026 revenue hit $31.51 billion with adjusted EPS of $0.57, up 11.8% year-over-year. The Lumen Mass Markets fiber acquisition closed in February 2026, pushing total reach above 37 million fiber locations.

The dividend reset to $0.2775 per quarter after the WarnerMedia spinoff and has held flat for 17 straight quarters. 2026 free cash flow is guided to $18 billion+ against roughly $4.4 billion in dividend obligations, with another $8 billion earmarked for buybacks.

Verizon

• Yield: 5.79%
• Shares for $10,000: 212.31
• Annual Passive Income: $579

Verizon (NYSE:VZ) offers income investors a yield that meaningfully exceeds Treasuries. Shares trade at roughly 9 times forward earnings, reflecting capital intensity and market skepticism on wireless growth. The Q1 2026 dividend stepped up to $0.7075, the latest in an unbroken quarterly streak spanning over two decades.

Capital-intensive telecoms generate mature, predictable cash flow supporting above-average payout ratios. Verizon delivered $19.8 billion in 2024 free cash flow and guided 2025 FCF to $17.5 billion to $18.5 billion as Frontier integration begins.

Altria

• Yield: 6.20%
• Shares for $10,000: 151.52
• Annual Passive Income: $620

Altria (NYSE:MO) sells Marlboro, Black & Mild, Copenhagen, Skoal, on!, and NJOY. Cigarette volumes fell 10% for full-year 2025, but pricing power and a 64.4% smokeable margin offset unit declines. Q4 2025 revenue rose 29.4% to $5.85 billion.

Tobacco generates excess cash with limited reinvestment runway in a shrinking primary market, so management routes nearly all of it back to shareholders. Altria raised the quarterly dividend to $1.06 in Q1 2026, the 60th increase in 56 years.

Full-year 2025 dividends paid totaled $7 billion, with another $1 billion remaining on the buyback authorization through year-end 2026.

The Bottom Line

Combined, these five positions generate $2,167 in annual passive income on a $50,000 investment, a blended yield of 4.33%. Altria contributes $620, Verizon adds $579, AT&T delivers $417, P&G generates $285, and Coca-Cola rounds out the portfolio with $266.

Reinvesting quarterly checks compounds position size automatically. The underlying companies have lifted payouts through nearly every economic environment of the past half-century. That combination of intraday liquidity and durable cash flow separates a dividend portfolio from every other passive income vehicle on the market.

The post Stocks That Pay You While You Sleep appeared first on 24/7 Wall St..

Market volatility has rattled portfolios in 2026, with broad equity indexes absorbing sharp swings tied to tariff uncertainty and shifting rate expectations. For investors who have watched their growth positions whipsaw, the appeal of dividend income has never been sharper. A stock that pays you $1,200 a year does so whether the market is up or down, and that cash hits your account on a schedule you can plan around.

The challenge is finding yield that is both meaningful and durable. Treasury yields remain competitive, but dividend stocks offer something bonds cannot: the potential for price appreciation alongside the income stream. And unlike rental real estate, high-yield equities are liquid. You can exit a position in seconds, not months.

We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we found a collection of companies that, combined, can generate over $4,200 a year in passive annual income if you invest just $30,000 in each stock at the time of this writing.

AT&T

• Stock #3: AT&T (NYSE:T)
• Yield: 4%
• Shares for $30,000: ~1,134
• Annual Passive Income: ~$1,200

AT&T is the largest U.S. telecommunications company by subscriber base, operating a converging 5G wireless and fiber broadband network across the country. The company closed 2025 with a current price of $25.47 and has delivered steady operational progress, including 10.4 million fiber connections and more than 1 million fiber net adds for the eighth consecutive year.

The dividend has held at $0.2775 per quarter ($1.11 annualized) since mid-2022 and is explicitly confirmed through 2028 per company guidance. Free cash flow supports the payout comfortably: AT&T generated $16.586 billion in FCF in 2025 and guided for $18 billion or more in 2026. Management also approved a new $10 billion share buyback authorization, signaling confidence in the balance sheet. Institutional investors hold roughly 68% of shares outstanding.

TotalEnergies

• Stock #2: TotalEnergies (NYSE:TTE)
• Yield: 4%
• Shares for $30,000: ~324
• Annual Passive Income: ~$1,200

TotalEnergies is a Paris-based integrated energy major with operations spanning exploration and production, liquefied natural gas, integrated power, refining, and retail marketing. The company produced 2,529 thousand barrels of oil equivalent per day in full-year 2025, up roughly 4% year over year, and is guiding for 5% overall energy production growth in 2026, including electricity production rising 25% to more than 60 TWh.

TotalEnergies raised its annual dividend by 6% for FY2025 to €3.40 per share, paid in four quarterly installments. At current exchange rates, €3.40 converts to approximately $3.97 in USD, and the Alpha Vantage data shows a reported dividend per share of $3.99. The company completed $7.5 billion in share buybacks in full-year 2025 and authorized a new repurchase program covering up to 169.76 million shares. Institutions own approximately 57% of the float.

Pfizer

• Stock #1: Pfizer (NYSE:PFE)
• Yield: 6%
• Shares for $30,000: ~1,176
• Annual Passive Income: ~$1,800

Pfizer is one of the world’s largest pharmaceutical companies, with a portfolio anchored by blockbuster franchises including Eliquis, Prevnar, the Vyndaqel family, Paxlovid, and Ibrance. The non-COVID portfolio grew 9% operationally in Q4 2025, and the company is investing aggressively in its pipeline with approximately 20 pivotal trial starts planned for 2026 and a roughly $7 billion acquisition of Metsera to build out an obesity and GLP-1 drug platform.

The quarterly dividend has increased by $0.01 per share every year since 2021, reaching $0.43 per quarter ($1.72 annualized). At a current price of $27.08, that produces a yield of 6%, the highest in this group. Institutional ownership stands at approximately 68%, and the analyst consensus target sits at $28.58.

Combined, these three positions generate $4,200 in annual passive income on a $90,000 investment, a blended yield of approximately 6%. AT&T contributes $1,200, TotalEnergies adds $1,200 and Pfizer rounds out the portfolio with $1,800.

What makes this portfolio structurally interesting is the diversification across three distinct sectors: telecom, energy, and pharmaceuticals. Each dividend is funded by a different underlying cash flow engine, which reduces the risk that a single industry downturn cuts the income stream. Reinvesting even a portion of these quarterly payments accelerates compounding in a way that a fixed-rate instrument simply cannot replicate over time.

The post Want $4,200 in Passive Income? Invest $90,000 ($30,000 Each) Into These 3 High-Yield Dividend Stocks appeared first on 24/7 Wall St..

Earned income has a ceiling. Passive income from dividend stocks operates differently: cash flows in whether markets are up or down, whether you’re working or sleeping. With core inflation still grinding higher, the Core PCE index at 128.86 as of February 2026, and the 10-year Treasury yielding 4.32%, income investors need yield that keeps pace with rising costs without illiquid assets.

High-yield dividend stocks solve that problem. Unlike rental real estate, they require no property management or maintenance. You can add to a position Tuesday morning and sell by Thursday afternoon. That liquidity, combined with quarterly or monthly cash distributions, makes dividend equities one of the most practical income vehicles for individual investors.

We screened our 24/7 Wall St. dividend equity research database and found five companies that combined can generate over $1,100 annually in passive income on a $5,000 investment in each stock.

Johnson & Johnson

• Yield: 2.22%
• Shares for $5,000: 21.35 shares at $234.18
• Annual Passive Income: $111

Johnson & Johnson (NYSE:JNJ) operates Innovative Medicine, covering oncology and immunology drugs, and MedTech, spanning cardiovascular devices, orthopaedics, surgery, and vision. The company holds one of only two AAA credit ratings among U.S.-based corporations, a financial bedrock supporting its uninterrupted dividend growth.

JNJ has raised its dividend for 64 consecutive years, making it a Dividend King. The most recent increase, from $1.30 to $1.34 per quarter declared in April 2026, reflects commitment to income shareholders. Institutional investors hold 75.8% of shares outstanding, underscoring its role as a core holding across large portfolios.

Coca-Cola

• Yield: 2.71%
• Shares for $5,000: 66.02 shares at $75.74
• Annual Passive Income: $136

Coca-Cola (NYSE:KO)  is a global beverage franchise earning revenue from selling concentrates and syrups to bottling partners worldwide, a capital-light model generating durable free cash flow. The company has raised its dividend for 63 consecutive years, and the most recent quarterly payment stands at $0.53 per share as of Q1 2026, up from $0.51 in each quarter of 2025.

The brand portfolio includes Coca-Cola Zero Sugar, Sprite, Fanta, Powerade, Dasani, smartwater, fairlife, and Minute Maid. Institutional investors control 66.7% of shares, and the analyst community skews constructive, with 12 Buy ratings and 7 Strong Buy ratings against zero Sell calls.

Procter & Gamble

• Yield: 2.92%
• Shares for $5,000: 34.03 shares at $146.93
• Annual Passive Income: $146

Procter & Gamble (NYSE:PG) sells everyday products consumers buy regardless of economic conditions: Tide, Pampers, Gillette, Oral-B, Crest, Head & Shoulders, Febreze, Bounty, and Charmin. That defensive revenue profile anchors one of the most reliable dividend records in the market.

PG raised its quarterly dividend to $1.088 for Q2 2026, up from $1.056 the prior quarter, extending a multi-decade streak of consecutive annual increases. The company plans approximately $10 billion in dividends and $5 billion in share repurchases in fiscal 2026. Institutions own 70.4% of shares, and the stock carries a beta of 0.403, making it one of the lower-volatility names in any dividend portfolio.

AT&T

• Yield: 4.20%
• Shares for $5,000: 188.61 shares at $26.51
• Annual Passive Income: $210

AT&T (NYSE:T) generates revenue from wireless mobility, AT&T Fiber broadband, and business wireline services. The fiber buildout is the growth engine, with 10.4 million fiber connections representing 11.5% year-over-year growth.

The dividend has held at $0.2775 per quarter since 2022, and management committed to maintaining the $1.11 annualized rate through 2028. That stability, combined with a new $10 billion share buyback authorization, signals focus on returning capital to shareholders.

Realty Income

• Yield: 4.98%
• Shares for $5,000: 76.82 shares at $65.09
• Annual Passive Income: $249

Realty Income (NYSE:O) is a net lease REIT owning more than 15,000 commercial properties leased to tenants who pay property taxes, insurance, and maintenance costs directly. As a REIT, it must distribute at least 90% of taxable income to shareholders, structurally driving elevated yield.

The company earns its nickname “The Monthly Dividend Company” by paying shareholders monthly rather than quarterly. The most recent monthly dividend is $0.2705 per share, and the company has recorded 113 consecutive quarterly dividend increases and 133 total increases since its NYSE listing in 1994. Institutional investors own 80% of shares, the highest concentration among all five names in this portfolio.

The bottom line

Combined, these five positions generate passive income on a $25,000 investment. Realty Income adds $249, AT&T provides $210, Procter & Gamble delivers $146, Coca-Cola generates $136, and Johnson & Johnson rounds out the portfolio with $111.

The Dividend Kings (JNJ, KO, PG) anchor the portfolio with decades of uninterrupted growth, while AT&T and Realty Income push the blended yield well above current Treasury rates. Reinvesting those distributions compounds the income base over time, growing the annual income base with each reinvestment cycle.

The post Put $5,000 In These Dividend Giants and Earn Passive Income Every Quarter appeared first on 24/7 Wall St..

AT&T (NYSE:T) has been one of the steadier performers in the Communication Services sector in 2026. The 24/7 Wall St. price target for AT&T is $30.34, representing approximately 14.43% upside from the current price of $26.51. Our rating is buy, with a high confidence level of 90%.

The 24/7 Wall St. price target aligns with Wall Street consensus of $30.39. The high-confidence reading reflects consistent earnings execution, improving cash flow guidance, and a compelling dividend yield relative to peers.

Fiber Growth Drives Momentum

AT&T gained 9.1% year-to-date through April 17, 2026. The stock trades between its 52-week low of $22.71 and 52-week high of $29.14, currently near the upper half of that range.

In Q4 2025, AT&T posted adjusted EPS of $0.52 against consensus of $0.46, exceeding expectations by 10.64%. Revenue of $33.47B exceeded estimates by 1.92% and grew 3.6% year over year. The earnings beat drove a 13.09% one-week stock gain, significantly outperforming the S&P 500, which fell 1.3% over the same 30-day window.

Bull Case: $31+ as Fiber and Free Cash Flow Accelerate

The bull case rests on three pillars. First, fiber expansion continues delivering. AT&T ended 2025 with 10.4 million fiber connections, up 11.5% year over year, and added 283,000 net fiber subscribers in Q4 alone. Management noted this was the best consumer broadband subscriber growth in a decade. With 32 million consumer and business locations already passed, the addressable base remains large.

Second, free cash flow is accelerating. Guidance calls for $18B+ in free cash flow in 2026, rising to $19B+ in 2027 and $21B+ in 2028. This supports both the $1.11 annualized dividend and the $8B in share repurchases planned for 2026 under a new $10B buyback authorization.

Third, tax savings from the One Big Beautiful Bill Act are expected to deliver $1.0 to $1.5B in annual cash tax relief, with $3.5B earmarked to accelerate fiber deployment.

Our bull scenario reaches $31.67 by April 2027. Wells Fargo maintains an Overweight rating with a $28 price target (raised from $27). Analyst consensus sits at with 4 Strong Buy and 12 Buy ratings out of 25 analysts bullish.

Bear Case: Debt, Competition, and Legacy Drag

The bear case centers on leverage, competitive pressure, and legacy wireline decline. The Lumen Mass Markets and EchoStar spectrum acquisitions push net debt/EBITDA to approximately 3.2x, with both deals expected to be dilutive to EPS in 2026 and 2027.

Business Wireline revenue fell 7.5% year over year in Q4, with legacy down 17.5%. The legacy segment will generate negative EBITDA after 2027 until copper decommissioning is complete. Short interest has risen 20.5% to 118.25 million shares.

T-Mobile continues pressing its 5G coverage advantage and has expanded into AI-native network infrastructure, which could pressure AT&T’s subscriber growth.

AT&T’s trailing P/E of 9x is well below sector averages. The free cash flow ramp through 2028 provides a credible deleveraging path to 2.5x net debt/EBITDA target. The bear scenario still produces a $27.37 price by April 2027, suggesting limited downside.

AT&T Price Projections: 2026 to 2030

These projections assume AT&T executes on fiber expansion and free cash flow commitments. Upside could emerge if Lumen integration delivers ahead of schedule or copper decommissioning accelerates. Downside risk ties to competitive pressure from T-Mobile and Verizon’s fiber buildout via Frontier.

A Steady Compounder With a Credible Path Higher

The 24/7 Wall St. price target of $30.34 carries a high-confidence buy rating. AT&T is not a high-growth story, but does not need to be. The combination of a 4.2% dividend yield, a credible free cash flow ramp to $21B+ by 2028, and a trailing P/E of 9x gives the risk/reward profile a favorable skew based on current fundamentals.

Key risks to monitor include leverage remaining above 3x into 2027 or fiber net adds stalling below the 1 million annual threshold AT&T has achieved for eight consecutive years.

At $26.51, the combination of dividend income and a credible capital appreciation path gives the risk/reward profile a favorable skew for patient investors.

The post AT&T Stock Price Prediction: Bull and Bear Case appeared first on 24/7 Wall St..

AT&T (NYSE:T) reports first-quarter 2026 results on April 22, with the call starting at 8:30 AM ET. After a strong finish to 2025 and two major acquisitions closing, this report marks the first real test of whether AT&T’s growth story can hold up under new structural complexity.

A Strong Close, Then a Pullback

AT&T closed out 2025 on a high note. Q4 2025 EPS came in at $0.52, beating the $0.47 estimate by 10.64%, while revenue of $33.466 billion topped the $32.84 billion consensus by 1.92% and grew 3.6% year over year. Full-year adjusted EPS reached $2.12, up 8.7% from $1.95 in 2024.

The stock responded sharply. Shares rose 4.65% on earnings day and climbed 16.37% over the following 30 days. But momentum has since faded. AT&T shares are down 5.62% over the past week and off 1.56% over the past month, closing at $26.46 on April 10. The stock is still up 8.9% year to date, but the recent softness reflects broader market pressure and some investor caution ahead of a structurally transitional quarter.

This is the first quarter AT&T reports under its new segment structure: Advanced Connectivity, Legacy, and Latin America. That alone makes comparisons trickier. Add in the Lumen (NYSE:LUMN)  Mass Markets fiber acquisition — which closed Feb. 2 — and the EchoStar (NASDAQ:SATS) spectrum license deal, and this quarter carries more moving parts than usual.

Consensus Estimates for Q1 2026

Note: Q1 2026 estimates are derived from full-year 2026 guidance. Actual Wall Street consensus figures were not available at time of publication.

New Segments, Acquisitions, and the Fiber Flywheel

The most critical item to watch on April 22 is how management frames the new segment reporting structure and what the Lumen and EchoStar integrations actually cost this quarter. Both deals were described as modestly dilutive to adjusted EPS in 2026 and 2027 before turning accretive in 2028. The first quarter with these assets on the books will set the tone for how much dilution investors should actually expect.

Fiber remains the core growth engine. AT&T ended 2025 with 10.4 million fiber connections, up 11.5% year over year, and posted more than 1 million fiber net adds for the eighth consecutive year. The convergence metric is compelling: 42% of AT&T Fiber households also choose AT&T wireless, a cross-sell dynamic that meaningfully lifts revenue per customer.

The Advanced Connectivity segment deserves close attention. Management guided for Advanced Connectivity service revenue growth of 5%+ in 2026, while the Legacy segment is expected to see revenue decline more than 20% in 2026. The speed of that legacy decline versus the pace of fiber and wireless growth will determine whether the overall top line holds up.

Postpaid phone churn bears watching too. Churn ticked up 13 basis points year over year to 0.98% in Q4 2025. One quarter of elevated churn is manageable. A second consecutive quarter of elevated churn would raise questions about competitive pressure from T-Mobile (NYSE:TMUS) and Verizon (NYSE:VZ). Free cash flow guidance of $18 billion or more for full-year 2026 is ambitious given near-term acquisition costs, so any commentary on cadence will matter.

Prediction markets are leaning optimistic. Polymarket traders put the probability of AT&T beating Q1 earnings at 87%. Analyst sentiment backs that view, with 16 buy ratings and 9 holds, and a consensus price target of $30.39 against the current $25.94 price.

The First Chapter of a New AT&T

This quarter opens a new chapter for a restructured company with new assets, new reporting lines, and a three-year commitment to $45 billion or more in total shareholder returns through 2028. CEO John Stankey said AT&T is “accelerating our strategy to deliver improved growth, the best customer experience and enhanced returns for shareholders over the next three years.” April 22 is where investors find out if that acceleration has started on schedule.

The post Is April 22 When AT&T Finally Rings Up Growth Again? appeared first on 24/7 Wall St..

T-Mobile (NASDAQ:TMUS) stock is sliding in early Monday trading, down 1% to $193, even as KeyBanc analyst Brandon Nispel issued a notable upgrade this morning. The call is turning heads on Wall Street, and for good reason.

That implies meaningful upside from current levels, with a projected 33% gain from recent prices. The broader market’s turbulence may be muting the initial reaction, but the thesis here deserves a closer look.

KeyBanc Upgrade Targets Network Edge and Valuation Gap

Nispel’s core argument centers on accelerating organic EBITDA growth, with what he describes as “upside levers” still available to management. He also highlights T-Mobile’s “advantageous” network position as a competitive driver, particularly in the fixed wireless access market. That distinction matters significantly in today’s telecom landscape.

KeyBanc views T-Mobile’s balance sheet as offering “optimal optionality,” and sees the stock’s valuation as “compressed” relative to its own history. The firm also believes T-Mobile’s Q1 2026 results will serve as a near-term catalyst, with management potentially raising full-year projections when they report. That earnings date is circled on April 23.

The valuation compression argument has real data behind it. T-Mobile shares have pulled back from a 52-week high of $263.46 to current levels near $193. Meanwhile, the stock trades at a forward P/E ratio of 18x, which looks modest given the growth profile underneath.

The Fundamentals KeyBanc Is Betting On

The EBITDA growth thesis isn’t speculative. T-Mobile guided for Core Adjusted EBITDA of $37.0 billion to $37.5 billion in 2026, representing roughly 10% year-over-year growth at the midpoint. Free cash flow guidance comes in at $18.0 billion to $18.7 billion, following a full-year 2025 figure of $17.995 billion, which itself grew 80% year over year.

On the network side, T-Mobile’s credentials are hard to argue with. The company achieved a first-ever J.D. Power network quality sweep across five of six U.S. regions, earned Ookla’s Best Mobile Network award back-to-back, and claimed Opensignal’s Best Overall Experience for four consecutive years. That kind of recognition doesn’t happen by accident, and it’s exactly the competitive moat KeyBanc is pointing to.

Fixed wireless access is where the growth story gets particularly interesting. T-Mobile now counts 9.4 million total broadband customers, with 8.5 million on 5G broadband. The recently launched Mint Mobile bundle, priced at $45 per month with a five-year price guarantee, takes direct aim at cable providers and signals how aggressively T-Mobile is pushing into the home connectivity market.

How T-Mobile Stacks Up Against Peers

The relative performance comparison is striking. While T-Mobile shares are down 3% year to date, Verizon (NYSE:VZ) stock has gained 17% year to date, and AT&T (NYSE:T) stock is up 9% year to date. That divergence is precisely what KeyBanc’s “compressed valuation” language is getting at.

Interestingly, a separate MoffettNathanson upgrade issued April 8 also moved T-Mobile stock to Buy with a $254 price target, citing industry-best postpaid phone net additions and surging free cash flow. The analyst consensus now sits at 22 Buy ratings, 7 Hold ratings, and zero Sells, with an average price target of $268.68. That’s a wide gap from where the stock is trading today.

New T-Mobile CEO Srini Gopalan set the tone on the Q4 earnings call, stating:

“In 2025, more new postpaid customers chose the Un-carrier than ever before, driven by outstanding momentum across all categories. As we look to 2026, we’re even more confident that the future is brighter than ever before.”

That confidence is now being echoed by multiple Wall Street desks.

What to Watch Next

The prediction market on Polymarket currently puts the odds of T-Mobile beating its upcoming quarterly earnings at 51% Yes versus 49% No, reflecting genuine uncertainty heading into the print. KeyBanc is clearly in the “beat and raise” camp, and the Q1 report on April 23 will be the moment of truth for that thesis.

Watch for whether management raises full-year EBITDA and free cash flow guidance on that call. If they do, and T-Mobile stock remains near its current levels, the valuation gap KeyBanc is flagging could become even harder to ignore.

The post KeyBanc Upgrades T-Mobile to Overweight, Citing Network Advantage and Compressed Valuation appeared first on 24/7 Wall St..

Replacing a $100,000 annual income with dividends is a concrete, achievable goal for investors with enough capital and the right yield strategy. The math is straightforward, but the tradeoffs are real: each yield tier costs you differently in capital required, income stability, and long-term wealth preservation.

The Benchmark You Are Competing Against

Before running the dividend math, one number deserves attention: the 10-year Treasury yield currently sits near 4.3%. That is the risk-free rate. Every dividend strategy in this article needs to beat that rate in yield, total return, or both to justify the added complexity and risk of equity ownership. The Fed funds rate is currently 3.75%, down from a peak of 4.5% in September 2025, which has improved the borrowing environment for leveraged income vehicles but has not eliminated their risk.

Keep that 4.3% number in mind as you read each tier below.

Tier One: The Capital-Intensive, Low-Drama Approach (3% to 4% Yield)

At a 3.5% yield, $100,000 divided by 0.035 equals approximately $2,857,000 in invested capital. At 4%, $100,000 divided by 0.04 equals $2,500,000. This is the “sleep at night” tier: dividend growth stocks, broad market funds, and blue-chip income names where the yield is modest but the underlying business quality is high.

Two real-world examples anchor this tier. AT&T (NYSE:T) carries a dividend yield near 3.9% with a quarterly dividend of $0.2775 per share, stable since 2022. AT&T has committed to maintaining its dividend through 2028, and its 2026 free cash flow guidance exceeds $18 billion, which provides genuine coverage for that payout. Realty Income (NYSE:O) yields approximately 5.2% at current prices, which technically lands in the moderate tier, but its business model, monthly dividend structure, and 27-year track record of consecutive monthly payments make it a conservative anchor for income portfolios.

The tradeoff at this tier: you need the most capital, but the portfolio is most likely to preserve principal and grow income over time. For investors who can accumulate $2.5 million or more, this is where long-term income stability lives.

Tier Two: The Middle Ground Where Most Investors Land (5% to 7% Yield)

At 5%, $100,000 divided by 0.05 equals $2,000,000. At 7%, $100,000 divided by 0.07 equals approximately $1,429,000. That is a meaningful reduction in required capital, and it is achievable with REITs, MLPs, preferred shares, and select high-dividend equity funds.

Enterprise Products Partners (NYSE:EPD) is a practical example of what this tier looks like in practice. The current quarterly distribution is $0.55 per unit, translating to an annualized yield near 5.8%. Enterprise has grown its distribution for 27 consecutive years, and the midstream business model, fee-based cash flows tied to pipeline volumes rather than commodity prices, provides unusual stability for a 5%-plus yield. The stock has risen roughly 19% year to date, which compresses the yield slightly from its earlier levels but also demonstrates the total return potential in this tier.

Main Street Capital (NYSE:MAIN) occupies the upper end of this range. The regular monthly dividend is $0.26 per share, and quarterly supplemental dividends of $0.30 have been paid for 18 consecutive quarters. Combined, that produces a total annualized payout near $4.32 per share, implying a yield near 7.4% at recent prices. The regular-only yield sits closer to 5.3%, which matters because supplemental dividends can be reduced or eliminated if portfolio performance weakens.

The tradeoff here: dividend growth slows, income is less likely to keep pace with inflation over a 20-year horizon, and some of the yield reflects credit risk or structural complexity rather than pure business quality. For investors who cannot accumulate $2.5 million but can reach $1.5 million to $2 million, this tier is the realistic target.

Tier Three: Maximum Income, Minimum Capital, Maximum Risk (8% to 14% Yield)

At 10%, $100,000 divided by 0.10 equals $1,000,000. At 12%, $100,000 divided by 0.12 equals approximately $833,000. The capital requirement drops dramatically. So does the margin for error.

Ares Capital (NASDAQ:ARCC) is the largest publicly traded business development company, and it currently yields approximately 10.8%. The quarterly dividend has held at $0.48 per share consistently since 2023, and core earnings per share of $0.50 covers that $0.48 dividend, providing thin but real coverage. Ares manages a $29.48 billion portfolio across 603 companies, and its scale provides diversification that smaller BDCs cannot match.

But the risk profile at this tier is categorically different. Ares Capital shares have declined roughly 11% over the past year. An investor who bought a year ago received the 10%-plus yield but also absorbed a principal loss. That is the defining characteristic of this tier: the income is real, but the asset may not hold its value. Leveraged covered call funds, mortgage REITs, and high-yield bond funds in this range often distribute more than they earn in economic terms, returning capital to investors dressed up as income.

This tier represents a deliberate choice to prioritize current cash flow over long-term wealth preservation. Investors who understand that tradeoff and have other assets for long-term growth can use high-yield vehicles rationally. Investors who assume a 10% yield means 10% returns are making an error that will cost them principal over time.

The Compounding Insight That Changes the Calculation

Here is what the yield tiers above do not show: a 3.5% yield that grows 7% to 8% annually doubles the income in roughly nine to ten years. A portfolio generating $100,000 today at 3.5% could generate $200,000 in a decade if the underlying dividends compound. A 10% yield with no growth stays at $100,000 in year one and year ten, assuming the principal holds. If the principal erodes, the income shrinks.

Realty Income’s dividend history illustrates this concretely. The monthly dividend was $0.189 per share in 2015 and has grown to $0.2705 per share in early 2026. That is meaningful compounding over a decade. The investor who bought Realty Income a decade ago at a 4% yield is earning a much higher yield on their original cost today, plus the share price has appreciated. Realty Income shares have risen roughly 65% over the past ten years.

Enterprise Products Partners tells a similar story. The quarterly distribution has grown from $0.45 per unit in 2021 to $0.55 in early 2026, a steady march higher that rewards patient holders. The unit price has risen roughly 143% over five years.

The investor chasing 12% yield today may be trading away that compounding engine entirely.

Three Actions Worth Taking Before You Invest

1. Calculate your actual spending, not your salary. The $100,000 target in this article may be more than you need to replace. Most people spend less in retirement than they earned while working, particularly after accounting for payroll taxes, retirement contributions, and work-related expenses that disappear. If your real number is $72,000, the moderate tier becomes achievable at roughly $1,030,000 to $1,440,000 in capital, a very different conversation than the $2.5 million required at the conservative tier for $100,000.
2. Model the tax treatment of each tier before committing capital. Qualified dividends from stocks like AT&T and Realty Income are taxed at preferential rates. MLP distributions from Enterprise Products Partners involve return-of-capital components that defer taxes but create complexity at sale. BDC income from Ares Capital is typically taxed as ordinary income. In a high-tax state, the after-tax yield differential between tiers can be substantial enough to change which tier is actually optimal for your situation.
3. Compare 10-year total return data across tiers before anchoring to yield. Pull the 10-year total return for a dividend growth fund alongside a high-yield BDC fund and look at the ending portfolio value, not just the income stream. The compounding effect of principal appreciation at lower yield tiers frequently produces more total wealth than high-yield strategies, even accounting for the higher current income. That comparison, done with real numbers, is the most clarifying exercise in income investing.

The post How Much Do You Need To Invest To Make $100k On Dividends Right Now? New PF Investment Income Series appeared first on 24/7 Wall St..

Most investors hunting for AI exposure gravitate toward semiconductor stocks or hyperscaler tech, missing the physical layer underneath: the cell towers, data centers, and fiber networks that make AI run. Pacer Data & Infrastructure Real Estate ETF (NYSEARCA:SRVR) was built around that idea, and its underlying holdings are trading at a discount that makes the income and upside case unusually compelling together.

What SRVR Actually Owns

SRVR tracks the Solactive GPR Data & Infrastructure Real Estate Index, targeting companies that generate revenue from data and technology infrastructure real estate. The portfolio is 59.1% real estate, dominated by data center REITs and cell tower operators. The three largest positions: Equinix (NASDAQ:EQIX) at 16.6%, Digital Realty Trust (NYSE:DLR) at 15%, and American Tower (NYSE:AMT) at 14%. Those three names represent nearly half the fund.

Crown Castle (NYSE:CCI) and AT&T (NYSE:T) round out the notable holdings, alongside international tower operators and Asia-Pacific data center players. The fund carries a 0.49% expense ratio and has run since May 2018.

The return engine is straightforward: own the landlords of AI infrastructure and collect rent as demand for compute, connectivity, and 5G backhaul scales upward. When a hyperscaler signs a 10-year colocation lease at an Equinix campus or a carrier densifies its 5G network on American Tower’s rooftops, SRVR shareholders participate in that cash flow.

The AI Tailwind in the Numbers

American Tower’s data center segment generated $281 million in Q4 2025 revenue, up 19% year-over-year, with CEO Steven Vondran citing “increasing hybrid-cloud and AI-related workloads” and a “record quarter of signed retail new leasing” in data centers. The company guided FY2026 AFFO per share of $10.78 to $10.95 and is deploying $695 million toward data center development this year alone.

AT&T reinforces the thesis from the carrier side. The company now has 10.4 million fiber connections, up 11.5% year-over-year, and has posted fiber net adds exceeding one million for eight consecutive years. Management is committed to free cash flow of $18 billion or more in 2026, scaling to $21 billion or more by 2028. These reflect a business that has rebuilt itself around fiber and 5G convergence, backed by eight consecutive years of execution.

Equinix, the fund’s largest holding, is also up significantly. This is exactly the AI-driven colocation demand SRVR was designed to capture. Digital Realty has similarly gained about 26% over the past year.

Income You Can Count On (Mostly)

SRVR carries a 2.9% dividend yield at the fund level, modest for pure income seekers. The real income potential lies in the future, as telecom companies are aggressively hiking their payouts.

Crown Castle is the exception. The company cut its dividend last year from about $1.57 to about $1.06 per quarter in mid-2025, a roughly 32% reduction tied to Sprint cancellation headwinds and its pivot to a pure-play U.S. tower company. With only a 3.96% weighting in SRVR, the drag is real but contained.

Why the Discount Matters Now

Rate-sensitive REIT structures got punished during the high-rate environment of recent years. American Tower shares are down 14% over the past year, trading well below analyst consensus targets.

Moreover, most other REITs have been treading water for years.

This flatness is the price paid for rate sensitivity. If rates ease, the compression on these assets reverses. Investors collecting dividends while waiting for that repricing have been paid to be patient.

Three Tradeoffs to Understand First

1. Rate sensitivity is structural, not temporary. These companies carry significant debt to finance long-lived infrastructure assets, so rising rates compress valuations and increase refinancing costs. Investors need a view on rates, not just on AI demand.
2. Sector concentration is a feature and a risk. With nearly 46% of assets in just three names, SRVR is not a diversified ETF in any traditional sense. A deterioration in data center leasing economics or a major credit event at one of these names would hit the fund hard.
3. The income yield is modest relative to pure dividend ETFs. SRVR is not competing with high-yield bond funds or covered-call strategies. Its value proposition is growth plus income, with the growth side dependent on AI infrastructure demand continuing to compound.

SRVR fits best as a core infrastructure sleeve for investors who want AI exposure without paying growth-stock multiples, need some income along the way, and can tolerate rate sensitivity. Investors expecting a pure income vehicle or short-term price momentum will find it a poor match.

The post This Just Might Be the Best AI Dividend ETF You Can Own Today appeared first on 24/7 Wall St..

Verizon (NYSE:VZ) and AT&T (NYSE:T) have both reported full-year results, and the dividend story between them is more nuanced than raw payout numbers suggest. Verizon’s check is larger, but AT&T’s balance sheet is cleaning up faster. Which dividend is actually safer requires looking past the yield.

Verizon Grows Steadily. AT&T Rebuilds With Ambition.

Verizon’s Q4 2024 wireless service revenue hit $19.9 billion, marking the 18th consecutive quarter of sequential growth. The consumer segment drove $27.56 billion in Q4 revenue, up 2.2%, while fixed wireless access revenue surged 51.6% to $611 million as the company pushed toward its target of 8 to 9 million FWA subscribers by 2028.

AT&T’s quarterly results landed with more momentum. Total revenue reached $33.47 billion, up 3.6% year over year, beating estimates. Mobility revenue rose 5.3% to $24.35 billion, and AT&T Fiber now counts 10.4 million connections, up 11.5% year over year. The company has posted more than 1 million AT&T Fiber net adds for eight consecutive years.

The Dividend Math Points in Different Directions

Verizon’s yield sits at roughly 5.7% based on its current price of $48.79 and an annualized dividend of $2.76. The company has raised its payout for 15-plus years, and FY2025 operating cash flow came in at $37.14 billion against $11.48 billion in dividend payments. That looks healthy at the operating level.

After $17.01 billion in capital expenditures, however, the dividend consumed roughly 57% of free cash flow — a figure that warrants attention given $144 billion in total debt and the pending Frontier acquisition.

AT&T’s yield sits near 3.9% at its current price of $28.32. That lower yield reflects the 2022 cut from $0.52 to $0.277 per quarter, a roughly 47% reduction tied to the WarnerMedia spinoff.

The dividend has held at $0.2775 every quarter since Q2 2022 without interruption since. AT&T’s dividend now consumes just 42% of its $19.44 billion in FY2025 free cash flow, a meaningfully lower burden than Verizon’s. The company projects free cash flow of $18 billion or more in 2026, rising to $21 billion or more by 2028.

Leverage and Spending Plans Are the Real Watchlist Items

Verizon’s Frontier deal and CapEx guidance of $17.5 billion to $18.5 billion for 2025 could tighten the free cash flow cushion further. Business wireline revenue fell 8% year over year in Q4 and wholesale revenue dropped 11%. Those secular declines remain entrenched. The consumer wireless engine is strong, but the business segment drag is real.

AT&T is spending aggressively too. CapEx guidance runs $23 billion to $24 billion annually, and the Lumen and EchoStar acquisitions will push net leverage to roughly 3.2x before it declines. Legacy wireline services fell 17.5% in Q4 2025 and are expected to become immaterial by 2029, a transition that carries execution risk.

Why AT&T Looks More Durable on Dividends

Verizon’s payout is larger and has never been cut, but a 57% FCF payout ratio against a $144 billion debt load and an acquisition in progress leaves less margin for error.

AT&T’s dividend already absorbed its restructuring shock in 2022. What remains is a leaner, better-covered payout with a credible path to $45 billion or more in shareholder returns from 2026 through 2028.

Investors who prioritize dividend safety over size will find AT&T’s structure more defensible. Verizon suits income investors who want the higher absolute yield and can tolerate the leverage overhang. Both carry real risk, but AT&T has already taken its medicine.

The post Verizon vs. AT&T: One Telecom Dividend Is on Shaky Ground appeared first on 24/7 Wall St..

Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 32nd on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets.

It is always a good sign when the Goldman Sachs team starts raising price targets on Buy-rated companies. Typically, when a stock has been performing well, and its target price is increased, it usually means that analysts are optimistic about what they see six to 12 months ahead. When we see a target price increase of 11% or more, it’s time to share it with our readers. Here are three that appear to be outstanding ideas for growth and income investors.

Why we recommend Goldman Sachs stocks

Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investment spectrum and is likely to do so for years to come.

AT&T

AT&T (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. It continues to undergo a lengthy restructuring process while maintaining a solid dividend of 3.92%. AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

The company is continuing a multi-year restructuring into 2026, focusing on becoming a streamlined 5G and fiber connectivity company. Recent efforts include segmenting into Advanced Connectivity and Legacy, shifting to merit-based hiring, and relocating its global headquarters to Plano, Texas, to consolidate operations.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers.

Additionally, the company provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

The Goldman Sachs price target increased from $30 to $33, which represents a 16.5% gain from current levels.

Cheniere Energy

As the leading U.S. liquefied natural gas (LNG) exporter, with a small 0.76% dividend, Cheniere Energy (NYSE: LNG) is positioned to benefit from both domestic AI-driven demand and international energy needs. Natural gas accounts for 43% of U.S. electricity production, and Cheniere’s ability to scale operations quickly makes it a key player. The company’s export capabilities also provide a hedge against fluctuations in the domestic market. Some on Wall Street believe electricity demand growth could increase by as much as 160% by 2030.

The company provides clean and secure LNG to integrated energy companies, utilities, and energy trading companies worldwide. The company operates two natural gas liquefaction and export facilities:

• The Sabine Pass LNG Terminal in Louisiana features natural gas liquefaction facilities comprising six operational trains, and it has a total production capacity of approximately 30 million tons per annum (mtpa) of LNG.
• The Corpus Christi LNG Terminal in Texas consists of three trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks, and two marine berths. It also owns and operates a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines.

Goldman Sachs raised its $276 price target to $312. That would be an 11% gain from current levels.

Citigroup

This financial powerhouse offers investors a 2.05% dividend and solid total return potential, and it will be one of the first to report earnings next week. Citigroup (NYSE: C) is a global diversified financial services holding company. Its segments include:

• Services
• Markets
• Banking
• Wealth
• U.S. Personal Banking (USPB)

The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations.

The Markets segment provides corporate, institutional, and public-sector clients worldwide with a full range of sales and trading services across equities, foreign exchange, rates, spread products, and commodities.

The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses.

The Wealth segment includes Private Bank, Wealth at Work, and Citigold, and provides financial services to a range of client segments. The USPB segment includes branded cards and retail services.

The $123 Goldman Sachs target price is now $137, which signals an 18% gain.

The post Goldman Sachs Raises Price Targets 11% and More on 3 Dividend Blue Chips appeared first on 24/7 Wall St..

Shares of AST SpaceMobile (NASDAQ:ASTS) and Rocket Lab USA (NASDAQ:RKLB) are each down 6% in early trading this Thursday morning, extending a rough week for both space names. ASTS stock closed at $83.99 on April 1 and RKLB shares closed at $65.52, meaning today’s declines are carving further into what has already been a painful stretch.

The timing makes this selloff sting a little more. Today is the last trading session before Good Friday on April 3, when U.S. markets are closed. That long-weekend dynamic tends to push traders out of high-beta, speculative positions they’d rather not hold over three days of silence. Both ASTS and RKLB fit that profile exactly.

What makes today’s move frustrating for the bulls is that the company-specific news hasn’t turned negative. Both names have real catalysts in play; the macro environment is simply winning the argument right now.

Geopolitical Anxiety and Pre-Holiday Positioning Drive the Drop

The primary driver today is broader market anxiety tied to geopolitical fears around the Iran conflict, which is pushing investors away from speculative growth stocks and into safer ground. Space companies, with their long runways to profitability and high operational costs, are easy targets in a risk-off session.

For ASTS stock specifically, the one-week decline now stands at 13%, suggesting today’s move is part of a sustained short-term pullback rather than a single-day overreaction. High-frequency trading activity around the SpaceX IPO narrative is also adding noise, pulling speculative capital in and out of the space sector without much regard for individual company fundamentals.

Rocket Lab, meanwhile, is in a similar position. RKLB shares are down 10% over the past week, and year-to-date the stock is off 6%. Execution risks and the need for steady revenue conversion remain key concerns despite a strong contract pipeline.

BlueBird Progress and Mynaric Deal Can’t Outrun the Macro

AST SpaceMobile’s BlueBird satellite program continues to advance. BlueBird 6 has completed unfolding, BlueBird 7 is encapsulated at Cape Canaveral awaiting launch, and BlueBirds 8 through 29 are in production.

The company is targeting 45 to 60 satellites in orbit by the end of 2026, which would represent a genuine commercial inflection point. AST SpaceMobile CEO Abel Avellan remarked, “In 2026, we expect to scale our space-based direct-to-device network from initial commercial activation toward the start of broader commercial service.”

The financial foundation is also more solid than the stock price action implies. AST SpaceMobile carries liquidity exceeding $3.9 billion pro forma, holds more than $1.2 billion in contracted partner commitments, and received a $175 million prepayment from STC Group. Partners include AT&T (NYSE:T), Verizon (NYSE:VZ), and others. AST SpaceMobile’s Q4 2025 revenue came in at $54.305 million, beating the estimate of $42.24 million, with year-over-year growth of 2,731%.

Rocket Lab’s story is equally compelling on paper. The company recently received approval for its acquisition of Mynaric AG, expanding its optical communications capabilities.

Furthermore, Rocket Lab’s Q4 2025 revenue was $179.652 million, up 35.7% year over year, with a backlog of $1.85 billion, up 73% year over year. The company’s non-GAAP gross margin expanded to 44.3% in Q4 2025, up from 34.0% in Q4 2024. We covered the bull and bear cases for ASTS and RKLB in detail.

What to Watch Into the Close

Despite today’s pressure, the one-year picture remains intact for both names. ASTS stock is up 284.39% over the past year and RKLB shares have gained 260.99% over the same period. That kind of momentum doesn’t disappear in a pre-holiday session, but it can get tested when the macro environment turns hostile.

The composite sentiment score for ASTS sits at 62.45, tilting bullish with medium confidence, while RKLB’s composite score is 65.51, also bullish with medium confidence. The bulls aren’t gone. They’re just waiting for the weekend to pass and the geopolitical noise to settle before stepping back in.

Watch for whether both stocks can hold their current levels into today’s close. That will be the first signal of whether this is a shakeout or the start of something more sustained.

The post AST SpaceMobile and Rocket Lab Drop 6%: Geopolitical Fears Overshadow BlueBird and Mynaric Catalysts appeared first on 24/7 Wall St..

AT&T (NYSE:T) received price target increases from two Wall Street firms on Wednesday, with Goldman Sachs and KeyBanc both citing the company’s new segment reporting structure and converged customer momentum as reasons to revise their outlooks higher. The stock is up more than 5% over the past week, bringing its year-to-date gain to more than 17% alongside an attractive dividend that currently yields 3.84%.

New Segments, Clearer Story

Beginning with Q1 2026 results, AT&T is adopting a three-segment reporting structure: Advanced Connectivity, Legacy, and Latin America. KeyBanc is updating its model to reflect the new segments and its view on 2026 wireless service revenue growth cadence and pricing actions. Goldman Sachs similarly flags the new structure as a catalyst for improved investor transparency. CEO John Stankey framed the rationale directly on the Q4 earnings call: “By separating the performance of our advanced connectivity business from our declining legacy segment, we believe investors will have greater transparency into the returns we’re generating on our growth investments in 5G and fiber.”

CFO Pascal Desroches added important scale context: “In 2025, advanced connectivity drove about 90% of our revenues and over 95% of our adjusted EBITDA on a recast basis.” That concentration makes the Legacy drag more visible but also more manageable. KeyBanc expects Advanced Connectivity EBITDA growth of 6% to 7% to offset Legacy drag beyond 2027, allowing total EBITDA to accelerate from roughly 3% in 2026 to over 5% by 2028, consistent with AT&T’s own guidance range.

Converged Customers as the Core Thesis

Both firms point to converged customer growth as the structural driver behind the upgraded targets. AT&T appears best positioned to drive converged customers to over 12 million by 2030, according to KeyBanc. The current data supports that trajectory: the fiber convergence rate climbed 200 basis points year over year to 42%, the fastest annual increase since AT&T began tracking the metric. Stankey noted the competitive implication directly: “We estimate that our share of postpaid phone subscribers is 10 percentage points higher in areas where we offer fiber than in areas where we don’t.”

AT&T added 283,000 AT&T Fiber net adds in Q4 and 421,000 postpaid phone net adds in the same period, with churn holding at 0.98%. Full-year fiber connections reached 10.4 million, up 11.5% year over year.

What Investors Should Watch

Goldman Sachs flags that postpaid ARPUs face pressure from competitive pricing, back-book cuts, and targeted discounts, even as industry postpaid net addition trends remain stable. That tension between subscriber growth and per-unit pricing will be the key variable to track when AT&T reports under its new segment structure in Q1.

The company’s 2026 adjusted EPS guidance of $2.25 to $2.35 and free cash flow target of $18 billion or more set a clear benchmark against which the new reporting will be measured. With the stock up 17.58% year to date, the bar for continued outperformance is rising alongside the targets.

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It feels like 2026 is the year that boring stocks became somewhat exciting again. Of course, that ultimately depends on what you find exciting. Arguably, the bear market in software stocks, as well as the implosion in various AI stocks, seems to have created an exciting entry point for the growth-focused long-term investors still interested.

Either way, if it’s upside, momentum, value or even relative stability that interests you most, perhaps it’s time to give AT&T (NYSE:T) a second look. It’s a forgotten dividend behemoth that’s been on quite the comeback in recent years. Even amid 2026’s turbulence, the comeback might not be derailed, especially as growth investors return to the defensive dividend trade for relative insulation from all the volatility we’ve faced and choppiness that’s to come. 

AT&T might be boring, but it pays big dividends, and its comeback might be hard to stop

Understandably, AT&T isn’t exactly a name that would score you “oohs and ahs” from your savvy investing friends, especially since AI, agents, and all the sort have been the talk of the town. And despite weakness in some of the winners holding up the trade, there’s really no denying the disruptive impact. It’s an uneasy time as AI disruption looks to automate jobs and apply pressure to the vulnerable firms that could lose their lunch to the rise of agentics. Further down the road, we’ve got robotics, and that could challenge the way investors really think about moats.

Could it be that the physical moats aren’t as wide as we thought? Could there be a physical SaaS-pocalypse equivalent at some point down the road? It’s impossible to tell today, but I do think that AT&T is one place where investors can inject their portfolios with a double dose of calm, especially as the Iran war adds to the long list of worries, which, of course, includes the long-term AI impact.

Whether you own shares of AT&T through a dividend exchange-traded fund or if you’ve stashed them away in the defensive part of a barbell portfolio, I’d argue that the telecom behemoth is still worth considering, especially if you’re looking for investment ideas beyond the tech trade, which is no longer working for many.

Of course, the tech wreck could be a great long-term opportunity to add to a position, but if you’re like the many investors who are already overexposed, perhaps the AT&Ts of the world are more exciting to own. At the very least, they’ll help you ride things out if tech’s breather winds up lasting longer than just a few months.

Getting back on the growth track

With AT&T shares now up around 13% year to date (crushing the S&P, by the way), it might seem like chasing right here. But the 4.1% dividend yield is the real deal, and it looks positioned for growth.

The company is spending a great deal ($250 billion) to upgrade its network in the next five years. Investors might not be fans of CapEx, but when it comes to non-AI endeavors, especially those proven to generate cash flows, it seems like they don’t mind with the telecoms. In any case, I view AT&T as well-positioned right here as it stays in the good books of investors.

There’s a lot more to love about the yield and the growth path ahead, though. As a part of the company’s big multi-year spending plan, it’ll be exploring “AI-ready” networks as well as satellite connectivity. Sure, we’re a long way away from space satellites beaming enough low-latency data to stream on our phones, especially within buildings in the downtown area, but such connectivity is just in its infancy. And it’s bound to get much better. With AT&T investing in the future of connectivity, it stands out as a steady winner with the means to raise the bar on the dividend over time.

At just 9.1 times trailing price-to-earnings (P/E), perhaps it’s time to stay the course on the low-tech titan that’s finally getting it right. With a low 0.58 beta, look for T stock to stand tall on those nastier days for tech.

The post Boring Pays Dividends: Why AT&T is the Hot Stock Nobody Wants to Admit They Own appeared first on 24/7 Wall St..

Pre-Market Stock Futures:

Futures are trading lower as many across Wall Street breathed a semi-sigh of relief yesterday after oil futures, which shot up to $120 overnight, retreated below $100 on Monday. That was the biggest spike in oil pricing since 2020. With the retreat in the black gold, the major indices did a massive midday turnaround. Then, news hit the tape that President Trump is considering taking control of the Strait of Hormuz, which sent all the major indices higher. When it was all said and done, all four finished the day higher. The battered Nasdaq led the comeback, closing up 1.38% at 22,695, with the small-cap Russell 2000 in close pursuit, finishing the day up 1.13% at 2,556. The S&P 500 closed Monday at 6,795, up 0.83%, and the Dow Jones closed out the winners at 47,740, up 0.50%.  While the rally was encouraging for investors who were hammered last week, it was likely driven by large-scale short covering, and we may still not be out of the woods.

Treasury Bonds:

Yields were down across the Treasury curve except for the maturities of 1 year and shorter. Buyers returned to the belly of the curve and the longer-dated maturities, the same area that drew buyers on Friday. Surging global oil prices stoked inflation fears and raised the specter of stagflation, prompting investors to brace for prolonged high interest rates amid ongoing geopolitical tensions. The 30-year long bond closed Monday’s session at 4.72% while the benchmark 10-year note was last seen at 4.11%. 

Oil and Gas:

Once again, Wall Street remained laser-focused on oil pricing, and, as mentioned, after trading near $120 overnight, the quick return to $100 and lower was a huge boost for the stock market and equities in general following last week’s across-the-board selling. Brent Crude closed Monday at $90.91, down 1.92%, and the most important number for the American consumer was West Texas Intermediate, which closed down 4.13% at $87.15. Natural gas closed down 4.49% at $3.03.

Gold:

After a strong close to last week, Gold took a breather on Monday. Traders and analysts covering precious metals noted on Monday that they were not alarmed by the recent volatility. Wall Street hasn’t pulled back its bullish targets, and many are framing the correction as a potential entry point, with the structural drivers behind gold’s rally seen as unchanged. Gold finished trading on Monday at $5,135, down 0.69%, while Silver ended Monday trading at $86.32, up 2.34%. 

Crypto:

Cryptocurrencies showed notable strength Monday, with Bitcoin advancing amid rising oil prices and heightened geopolitical uncertainty. The late-day rally in the equity markets helped to push the total crypto market cap beyond $2.3 trillion. Ongoing short covering and some bargain-value buying helped provide a tailwind yesterday. At 8 AM EDT, Bitcoin was trading at $70,624, up 4.5% over the last 24 hours, while Ethereum was trading at $2,063. 

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Tuesday, March 10, 2026. 

Upgrades:

• AT&T Inc. (NYSE: T) was upgraded to Neutral from Sell at Arete with a $28 target price.
• CrowdStrike Holdings Inc. (NASDAQ: CRWD) was upgraded to Overweight from Equal Weight at Morgan Stanley, which raised the target price for the cybersecurity giant to $510 from $487.
• Hims & Hers Health Inc. (NYSE: HIMS) was upgraded to Neutral from Sell at Citigroup, which lifted the target price for the shares to $24 from $13.25.
• Intuit Inc. (NASDAQ: INTU) was upgraded to Buy from Neutral at Rothschild & Co Redburn, who raised the price target for the company to $700 from $670.
• Rivian Automotive Inc. (NASDAQ: RIVN) was raised to Buy from Hold at TD Cowen, which bumped the target price for the stock to $20 from $17.

Downgrades:

• Day One Biopharmaceuticals Inc. (NASDAQ: DAWN) was downgraded to Neutral from Buy at H.C. Wainwright, which trimmed the target price for the company to $21.50 from $22.
• Novo Nordisk A/S (NYSE: NVO) was downgraded to Hold from Buy at TD Cowen, which lowered the target price on the shares to $42 from $45.
• Qualcomm Inc. (NASDAQ: QCOM) was downgraded to Underperform from Neutral at Bank of America, with a $145 target price.
• Talkspace Inc. (NASDAQ: TALK) was cut to Sector Weight from Overweight at KeyBanc, as the company will be acquired for $5.25

Initiations:

• Amgen Inc. (NASDAQ: AMGN) was initiated with a Hold rating at Jefferies, with a $350 target price objective.
• Gilead Sciences Inc. (NASDAQ: GILD) was initiated with a Buy rating at Jefferies, which has a $180 price target for the shares.
• Lowe’s Companies Inc. (NYSE: LOW) was started with a Neutral rating at KGI Securities, which has a $255 target for the retail giant.
• Rocket Companies Inc. (NYSE: RKT) was started with a Buy rating at Compass Point, which has set a $21 target price.
• Strategy Inc. (NASDAQ: MSTR) was initiated with a Buy rating at B. Riley, which has a $175 target price set.

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When it comes to dividend stocks, the best policy is often the simplest one: buy them and leave them alone. A set-it-and-forget-it strategy can be remarkably effective, especially when your broker automatically reinvests dividend distributions back into the same shares. For investors who want to squeeze even more from their positions, conservative secondary yield strategies like covered calls can layer additional income on top of long-term holdings.

If you choose the right dividend-yielding stocks and hold them for years, you could set yourself up for a more comfortable retirement. The easy part is leaving those shares untouched; the hard part is identifying the right names to own in the first place.

The following four assets combine yield, financial durability, and long-term staying power. Paired with a disciplined buy-and-hold approach, they offer a straightforward path to building lasting passive income.

AT&T (T)

For a blue-chip telecommunications holding, few names are more familiar than AT&T (NYSE:T). The company has been a fixture of American business for well over a century, and its scale in wireless and broadband makes it one of the most defensible income stories in the market today.

AT&T’s earnings momentum has been steady and measurable. The company grew its adjusted EPS from $0.43 in the fourth quarter of 2024 to $0.52 in the fourth quarter of 2025, a meaningful improvement that reflects continued execution on its fiber and wireless growth strategy. Free cash flow expanded over the same period, from $4.0 billion to $4.2 billion on a quarterly basis, and the company has guided for over $18 billion in annual FCF in 2026, covering the dividend more than twice over. That cushion largely removes concerns about the sustainability of the payout. The current forward annual dividend yield sits at approximately 5.2%, which is well above the telecom sector average and offers genuine income heft for long-term holders.

Chevron (CVX)

Every durable income portfolio benefits from exposure to energy, and Chevron (NYSE:CVX) remains the gold standard for dividend reliability in that sector. The company has now raised its dividend for 39 consecutive years, the latest being a 4% increase declared in January 2026 that lifted the quarterly payment to $1.78 per share, or $7.12 annually. That streak, maintained through oil crashes, financial crises, and a global pandemic, is what separates Chevron from its peers.

The fundamental picture has grown more interesting since Chevron closed its $53 billion acquisition of Hess Corporation in mid-2025. The deal added significant Guyana deepwater production to Chevron’s portfolio, and Q1 2026 was the first full quarter reflecting that combined output: worldwide net oil-equivalent production surged 15% to 3,858 thousand barrels of oil equivalent per day. Chevron’s integrated business model, spanning upstream production and downstream refining, provides a natural hedge against commodity price swings that smaller, purer-play operators cannot match. For long-term income investors, the combination of a near-4% yield, a 39-year growth streak, and a production base that is measurably larger than it was a year ago makes Chevron a compelling hold.

Fidelity Enhanced High Yield ETF (FDHY)

Rounding out a stock-heavy income portfolio with a fixed-income component adds ballast, and Fidelity Enhanced High Yield ETF (NYSEARCA:FDHY) is one of the more thoughtfully constructed options in that space. The fund pays monthly distributions rather than the quarterly cadence of most equities, which suits investors who prefer a predictable, recurring cash flow. Its current annualized yield is approximately 6.3%, and the fund manages roughly $522 million in assets.

FDHY focuses on high-yield corporate debt but applies Fidelity’s quantitative research process to screen out the weakest issuers, prioritizing companies whose fundamentals can support their debt obligations across different rate environments. That active management layer is the key distinction from a passive junk bond index fund, and it is the primary reason the fund has delivered a three-year annualized total return of approximately 8.9%. Adding FDHY alongside individual blue-chip equities provides professional credit oversight without requiring constant portfolio attention from the investor.

Cisco Systems (CSCO)

A long-term income portfolio built entirely on traditional dividend sectors misses the compounding potential of high-quality technology businesses, and Cisco Systems (NASDAQ:CSCO) is the clearest example of a tech company that has earned its place in an income-focused allocation.

Cisco delivered record Q3 fiscal 2026 revenue of $15.8 billion, a 12% increase year over year, driven by an explosive acceleration in AI infrastructure demand. Product orders surged 35% compared to the prior-year quarter, and the company raised its full-year FY2026 AI infrastructure order expectation to $9 billion from an earlier estimate of $5 billion. Non-GAAP EPS came in at $1.06 for the quarter, up 10%, with full-year guidance lifted to $62.8 to $63.0 billion in revenue. The company ended Q3 with $16.6 billion in cash, equivalents, and investments, a balance sheet that leaves ample room for the continued dividend growth investors have come to expect. Cisco has raised its dividend for 14 consecutive years, most recently to $0.42 per quarter, translating to an annualized payout of $1.68 per share and a current yield of approximately 1.5%. That yield is modest relative to the other names on this list, but the earnings trajectory, anchored by AI-driven networking demand, provides confidence that the dividend will keep growing.

Editor’s note: This article was updated to reflect Chevron’s corrected 39-year dividend growth streak and raised quarterly payout of $1.78 per share, AT&T’s current forward yield of approximately 5.2% and its 2026 FCF guidance of $18 billion, Cisco’s Q3 fiscal 2026 record revenue of $15.8 billion and updated cash position of $16.6 billion, and FDHY’s current yield of approximately 6.3% and its NYSEARCA listing.

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Verizon suffered a major network outage this week, leaving hundreds of thousands of customers without service. A jarring reminder that in telecom, reliability is the whole product. It raises a fair question for dividend investors in either of these giants: is the yield you’re collecting built on a foundation that’s getting stronger, or one that’s quietly cracking?

Let’s settle the AT&T vs. Verizon debate for 2026, comparing dividend sustainability, debt trajectory, network momentum, and earnings quality, then hand down a verdict for retirement investors.

No. 2: Verizon

Verizon Communications (NYSE:VZ) is the better-yielding stock on paper. Its annualized dividend sits at $2.76 per share, and the current yield clocks in at 5.34%. That’s real income for retirement portfolios.

Verizon has been growing that dividend, modestly but consistently. It raised its quarterly payout from $0.6650 to $0.6775 in mid-2024, then again to $0.69 in mid-2025. No drama, no cuts. That’s the predictability income investors love.

The Q4 2024 results were genuinely impressive. Postpaid phone net additions hit 568,000, up 26.5% year over year, the best performance in over a decade. Fixed wireless access revenue jumped 51.6% to $611 million, with nearly 4.6 million FWA subscribers. The network is clearly winning customers.

But here’s the tension. Verizon guided 2025 adjusted EPS growth of just 0% to 3%. That’s essentially flat earnings on a stock trading near its 52-week high. Total debt sits at $144 billion, and the pending Frontier acquisition adds more leverage. Meanwhile, Verizon Business revenue fell 1.5% in Q4 2024, a segment that keeps dragging.

CEO Hans Vestberg offered optimism on the earnings call: “It’s only going to get better this year and beyond, as we have continued to strengthen Verizon with the pending Frontier acquisition, new satellite partnerships, and ongoing AI enablement.” That may prove true. But the near-term earnings story is muted, and this week’s outage is a reputational headache for a company whose entire value proposition is network quality.

Analysts have a consensus target of $49.80 on Verizon, which is actually below where the stock is trading today at $51.18. With the stock up nearly 28% year to date, a lot of the good news is already priced in.

No. 1: AT&T

AT&T (NYSE:T) won’t win the yield contest. Its annualized dividend is $1.11 per share, with a current yield of 3.83%. But the story here is about trajectory, and AT&T’s is pointing sharply upward.

The Q4 2025 results were a genuine beat. Adjusted EPS came in at $0.52 against a $0.47 estimate, a 10.64% beat. Revenue hit $33.47 billion, up 3.6% year over year. Full-year 2025 adjusted EPS grew 8.7% to $2.12, and free cash flow for the year totaled $16.586 billion.

The fiber buildout is the real story. AT&T now has 10.4 million fiber connections, up 11.5% year over year, and has added over 1 million fiber subscribers for eight consecutive years. 42% of AT&T Fiber households also take AT&T wireless, creating exactly the kind of sticky, bundled customer relationship that protects revenue for years.

On the balance sheet, yes, total liabilities are large at $293.7 billion. But AT&T is actively deleveraging. Net debt-to-EBITDA is expected to decline to roughly 3x by end of 2026. The company committed to $45 billion-plus in shareholder returns from 2026 through 2028, including an $18 billion-plus free cash flow target for 2026 alone.

CEO John Stankey put it plainly: “We achieved or surpassed all of our consolidated full-year guidance for 2025. With new investments in spectrum and fiber, we’re set to win more customers in more categories and geographies across the U.S.”

Analysts carry a consensus target of $29.41 on AT&T, still above the current price of $28.97. The stock trades at just 9x trailing earnings, one of the cheaper valuations in large-cap telecom.

The Verdict for Retirement Investors

Verizon pays you more today. AT&T is building something more valuable tomorrow. Verizon currently pays a higher yield, while AT&T shows stronger earnings momentum and a clearer deleveraging path. Investors researching dividend telecom stocks may want to weigh current income against long-term growth trajectory when evaluating either name. This week’s outage was a reminder that network reliability remains central to the telecom value proposition, a factor worth researching further for either company.

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Still one of the biggest names in telecom, AT&T (NYSE:T) trades at $27.98 as of Monday early afternoon, up 12% year-to-date but down 1.8% over the past week. Retail sentiment on Reddit has slid from a monthly average of 30.4 to a weekly average of 24.7, keeping AT&T in bearish territory. The conversation isn’t about fiber or wireless. It’s about a $47 billion mistake Reddit won’t let management forget.

The Ellison Deal Reopens AT&T’s Worst Trade

One post is driving nearly all of AT&T’s social activity this week. On r/wallstreetbets, user osiris_rai published “AT&T Lost $47B on This Exact Bundle—Now the Ellisons Are Buying It Back for $111B. Bold Move or Billionaire Ego Trip?” It drew 1,647 upvotes with a 97% upvote ratio and 267 comments.

“AT&T acquired the bundle for $108.7 billion in 2018 and exited for roughly $43 billion in 2022, booking a $47 billion loss in the process. The Ellison family is now paying $111 billion for those same assets, backed by $57.5 billion in debt from Bank of America, Citigroup, and Apollo. Bold move or billionaire ego trip?”

AT&T Lost $47B on This Exact Bundle—Now the Ellisons Are Buying It Back for $111B. Bold Move or Billionaire Ego Trip?
by u/osiris_rai in wallstreetbets

• AT&T’s history of acquiring media assets at peak prices makes its current $23 billion EchoStar spectrum purchase harder to evaluate with confidence
• Operating income fell 7.25% year-over-year to $6.1 billion in Q3 2025, even as headline net income surged on the one-time DIRECTV gain
• The pending Lumen acquisition will push net debt to adjusted EBITDA to approximately 3.0x before deleveraging begins

What the Actual Segment Data Shows

As far as AT&T results go, consumer fiber broadband revenue grew 16.8% year-over-year to $2.2 billion in Q3 2025, and AT&T ended 2025 with over one million fiber net adds for the eighth consecutive year. The convergence rate for customers subscribing to both fiber and wireless climbed 200 basis points year-over-year to 42% in Q4 2025.

Starting with Q1 2026 results, AT&T restructures into two segments: Advanced Connectivity (domestic 5G and fiber) and Legacy (covering copper-based services). Advanced Connectivity represented roughly 90% of revenues and over 95% of adjusted EBITDA in 2025, growing EBITDA at more than 3% annually. 

The consensus price target sits at $29.41, though Wells Fargo recently trimmed its target from $29 to $27. The stock trades at roughly 9x trailing earnings with a 4% dividend yield, and if the Advanced Connectivity numbers print cleanly and the Lumen integration stays on track, AT&T gets a chance to reframe the conversation away from its media-era missteps.

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Seasoned investors know it, but some traders might have to learn this lesson the hard way. When you churn through your portfolio with frequent trades and a high turnover rate, you’re likely to underperform a patient set-it-and-forget-it strategy.

The Hidden Costs of Churning vs. Set-and-Forget

Before diving into specific stock selections, it is critical to understand why frequent portfolio turnover acts as a drag on long-term performance. Active trading introduces significant friction through transaction overhead and bid-ask spreads, quietly chipping away at your principal before compounding can even take root. Furthermore, constant shifting triggers a severe tax drag, replacing the preferential tax treatment of qualified long-term dividends and long-term capital gains with higher short-term capital gains tax rates. A disciplined buy-and-hold framework bypasses these hidden costs entirely.

For most investors, it’s better to simply buy and hold a handful of dividend leaders instead of constantly chasing new stock-market trends. As long as you concentrate on high-quality businesses, share-price growth, and respectable yield, you could set yourself up nicely with a veritable passive-income machine.

Ultimately, you may want to diversify your portfolio into dozens or even hundreds of stocks (with the help of exchange traded funds (ETFs)). To get you started with a few prime set-it-and-forget-it dividend picks, however, I’ll give you three carefully selected stocks today for your consideration.

AT&T (T)

If you’re going to buy, hold, and forget about a stock, it makes sense to invest in a long-established market leader like AT&T (NYSE:T). This telecommunications firm has been around for a very long time, and AT&T stock isn’t prone to bouts of extreme volatility.

We can actually quantify this with a metric called beta. AT&T stock has a five-year monthly beta of 0.61, which means that the stock has historically moved 61% times as fast (both up and down) as the S& S&P 500.

Yet, even if AT&T stock is a comparatively slow mover, it still has growth potential. Over the past five years, the stock is up 32%, which isn’t bad at all.

What’s really appealing about AT&T stock, though, is that it’s an outstanding passive income source. Impressively, this stock currently pays an annual dividend yield hovering between 4.20% and 4.62% depending on trailing vs. forward calculation metrics, bolstered by steady structural quarterly dividend declarations.

Even if you’re a passive investor, you can still take full advantage of what AT&T has to offer. If your broker allows you to automatically reinvest the dividends into more AT&T shares, then you could leverage the magic of compounding for a maximum wealth-building effect.

Altria (MO)

Our second set-it-and-forget-it pick is, of all things, a tobacco grower. It’s a huge company called Altria (NYSE:MO), which still makes a boatload of money from tobacco products but is also pivoting toward smoke-free alternatives.

If you’re willing to keep an open mind, then you could reap substantial rewards over time with Altria stock. Backed by regular quarterly payouts confirmed at recent shareholder meetings, the company delivers a hefty 6.29% annual dividend yield, making this an incredibly robust passive income generator to consider.

The share price is also likely to increase if you wait long enough. It’s reassuring that, during the past five years, Altria stock gained nearly 60% and that doesn’t include the dividend distributions.

Furthermore, you won’t have to lose sleep at night worrying about MO stock making huge swings. Altria’s five-year monthly beta is quite low at just 0.5 or 50%, indicating that this tobacco-market investment is a safety play you can count on.

Home Depot (HD)

Selection number three isn’t a fixer-upper at all; it’s more like a sturdy home you can live in for decades. Truly, home improvement supply store chain Home Depot (NYSE:HD) is a premier business with a track record of rewarding its loyal shareholders.

The HD stock price is up 47% over the past five years, and its 1.05% five-year monthly beta means it has moved nearly in tandem with the stock market overall. To put it another way, you can just leave Home Depot in your portfolio and relax.

Granted, Home Depot is a “cyclical” business, meaning that its financial condition depends largely on how the broader economy is doing. Nevertheless, it’s a positive sign that Home Depot continues to pay quarterly dividends throughout the ups and downs of the economy.

Speaking of dividends, Home Depot stock’s 2.76% annual yield really sweetens the deal for investors. It’s yet another reason to grab some HD shares and let them provide you with fantastic long-term value.

Comparing Dividend Anchor Strategic Profiles

To visualize how these primary assets compare within a diversified portfolio framework, review their baseline income metrics side-by-side:

More Stocks to Consider

We’re off to a terrific start with AT&T, Altria, and Home Depot stocks, but I don’t want to leave you just yet. So you can continue your journey into the world of dividend-paying set-it-and-forget-it stocks, here are a few more to consider:

• Dow (NYSE:DOW): This material science leader brings a robust 3.60% forward yield to the table, helping to balance out retail and telecom exposures with an industrial base.
• United Parcel Service (NYSE:UPS)
• International Business Machines (NYSE:IBM)
• Pfizer (NYSE:PFE)
• Coca-Cola (NYSE:KO): Widely recognized as a defensive consumer staple classic, this asset provides an ideal recession-proof anchor for a hands-off wealth strategy.

These are all blue-chip dividend deliverers that deserve your time and attention. The next step is to investigate further into dividend stocks that you won’t need to watch constantly — and of course, you’ll want to watch this space for frequent updates, investment concepts, and much more.

Editor’s Note: This article has been updated to reflect current market data, including adjusted annual dividend yields for AT&T, Altria Group, and Home Depot. New subsections analyzing the frictional costs of high portfolio turnover and comparing core stock profiles side-by-side have been added, alongside expanded analytical summaries for Dow Inc. and Coca-Cola within the secondary watchlist.

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It’s been a fantastic 2026 for most dividend stocks so far this year, but most dividend-payers took a break last week. The Schwab U.S. Dividend Equity ETF was flat while the Consumer Staples SPDR fell 1.8%.

With the stock market opening in about 90 minutes for the week, let’s take a look back at which dividend stocks saw the biggest movements last week.

Broad Market Snapshot

Dividend Stock Performance: Week of Feb 17-20, 2026

Key Movers

Crown Castle (CCI): DISH Default Shakes a Tower Giant

Crown Castle was the week’s most talked-about dividend stock following the company’s February 4th earnings report. CEO Christian Hillabrant confirmed the company had terminated its agreement with DISH Wireless following a default on payment obligations. Crown Castle is now seeking to recover over $3.5 billion in unpaid amounts. That is not a rounding error. That is a structural hole in the revenue model of a company that owns over 40,000 cell towers across the United States.

The sell-side responded quickly. Barclays analyst Brendan Lynch cut his price target to $91 from $101, maintaining an Equal Weight rating, while other analysts including those at Wells Fargo and Jefferies also reduced their targets. The consensus average sits near $100, but the stock has been trading well below that level. CCI pays a quarterly dividend of $1.0625 per share, already reduced from the prior rate of $1.565 per quarter that was cut in early 2025. The DISH default raises fresh questions about tenant concentration risk and whether the dividend is sustainable heading into what management has described as a potential trough year with an expected net loss of $780 million in 2026.

AbbVie (ABBV): Pipeline Strength Meets Policy Headwinds

AbbVie dropped nearly 3% on the week despite a string of positive pipeline developments, including FDA approval of its VENCLEXTA plus acalabrutinib combination for previously untreated chronic lymphocytic leukemia. Broader healthcare sector weakness and uncertainty around drug pricing policy weighed on the stock.

AbbVie has increased its dividend for 13 consecutive years, and the most recent quarterly dividend of $1.73 per share reflects a 5.5% increase from the prior rate. Barclays recently initiated coverage with an Overweight rating and a $275 price target, citing underappreciated operating leverage. The long-term dividend story here remains intact, but near-term policy noise is creating volatility.

AT&T (T): Analyst Cuts Add Pressure

AT&T slid roughly 2.5% on the week after two major banks trimmed their price targets. Barclays maintained a Hold rating with a $26 price target, reflecting persistent caution about the competitive telecom environment. T-Mobile’s newly announced exclusive access to Starlink’s direct-to-mobile service adds another competitive wrinkle. AT&T pays a quarterly dividend of $0.2775 per share, and the stock still yields close to 4% at current prices. For income investors, AT&T remains a high-yield holding, but the analyst consensus price target of $29.41 suggests limited near-term upside from current levels.

Bright Spots

• Kinder Morgan (+1.27% on the week): The midstream pipeline operator is up over 20% year to date, supported by strong data center and AI-driven natural gas demand. KMI raised its quarterly dividend to $0.2925 in early 2026.
• Altria (+0.48% on the week): Up 17% year to date, Altria reaffirmed its 2026 adjusted EPS guidance of $5.56 to $5.72 at the Consumer Analyst Group of New York conference. With a dividend yield near 6.1%, it remains one of the highest-yielding names in the dividend universe.
• Coca-Cola (+1.47% on the week): A quiet outperformer among consumer staples this week, with analysts at Barclays and UBS maintaining Buy-equivalent ratings.

The Bigger Picture and Week Ahead

The VIX sits at 20.23, sitting at the boundary between normal and elevated uncertainty. That is not a panic reading, but it is not complacency either. The 10-year Treasury yield is at 4.08%, down from a recent high of 4.29% in early February, which provides some marginal relief for rate-sensitive dividend stocks. The Fed funds rate remains at 3.75%, unchanged since December, with no immediate catalyst for a move in either direction. When investors are chasing growth, defensive income plays tend to sit on the bench. That dynamic was on full display this week.

It’s been an outstanding year so far for most dividend payers as investors flee to stocks that are seen as resistant to AI disruption. We’ll see if that trend continues this week.

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Comcast recently sent $0.33 per share to investors in January 2026, marking the company’s eighteenth consecutive year of dividend growth. The cable and media giant’s dividend program stands out in a sector where many competitors have slashed or eliminated payouts entirely.

With a current yield of 4.09% and a remarkably conservative payout ratio of just 24.49%, Comcast’s dividend looks sustainable even as the company navigates intense broadband competition and invests heavily in growth initiatives. But the real story lies in the cash flow generation backing these payments.

Record Free Cash Flow Provides Dividend Cushion

Comcast generated $21.9 billion in free cash flow during 2025, the highest annual figure in company history. That translates to 4.48x coverage for the $4.9 billion paid out in dividends-well above the 2.0x threshold typically considered safe.

The improvement from 2024 is striking. Free cash flow jumped 41.3% year-over-year, driven by stronger operating cash flow and reduced capital expenditures. Even after funding $7.2 billion in share repurchases, the company returned only 55% of its free cash flow to shareholders, leaving substantial cushion for economic downturns or strategic investments.

CFO Jason Armstrong emphasized the company’s financial flexibility during the Q4 2025 earnings call: “Our capital allocation strategy remains unchanged. Our priorities are to invest organically in our growth businesses, maintain a strong balance sheet, and return capital to shareholders.”

Dividend Growth Trajectory Slows but Remains Intact

Comcast has increased its quarterly dividend from $0.1575 in 2017 to $0.33 in 2026, representing a 109% increase over nine years or roughly 8.5% compounded annually. The most recent increase came in Q2 2025, when the company raised the quarterly payment from $0.31 to $0.33—a 6.5% bump.

While the growth rate has moderated from the 8-9% annual increases seen in 2021-2022, management confirmed investors should expect another increase in 2026. Armstrong stated: “Our investors should see higher total dividends in 2026, marking our eighteenth consecutive year of dividend growth.”

The company maintains a quarterly payment schedule with ex-dividend dates typically falling in early January, April, July, and October. The next payment is scheduled for April 22, 2026 for shareholders of record as of April 1, 2026.

How Comcast Stacks Up Against Telecom Peers

Comcast’s dividend profile stands in sharp contrast to major competitors in the cable and telecom space:

Charter Communications, Comcast’s primary cable competitor, pays no dividend at all, choosing instead to focus capital allocation entirely on debt reduction and share buybacks. AT&T offers a similar yield to Comcast but with a higher payout ratio and a troubling recent history—the telecom giant slashed its dividend by 46.6% in 2022 and has kept it frozen at $1.11 annually since then.

Near-Term Headwinds Could Test Dividend Policy

While Comcast’s dividend appears secure, several factors warrant monitoring. The company benefited from approximately $2 billion in one-time tax benefits during 2025 that will not repeat in 2026. Armstrong explicitly warned that 2026 cash tax benefits would be “significantly lower” than 2025’s outsized gains.

The company is also entering what management calls its “largest broadband investment year in our history” as it completes network upgrades and transitions customers to simplified pricing. This investment cycle is pressuring near-term EBITDA, which declined 10.3% in Q4 2025.

The broadband business lost 181,000 subscribers in Q4 2025 as fiber and fixed wireless competition intensified. Armstrong acknowledged that “incremental EBITDA pressure over the next couple of quarters” is expected until the company laps these initial investments.

Growth Engines Offset Legacy Business Pressure

Comcast’s dividend sustainability ultimately depends on whether growth businesses can offset broadband headwinds. Three segments showed particularly strong momentum in Q4 2025:

Domestic Wireless: Revenue jumped 18% as the company added 1.5 million net lines during 2025, reaching 9 million total lines. Current penetration of just 15% of the residential broadband base suggests significant runway for continued growth.

Peacock Streaming: Revenue grew 23% to $1.6 billion in Q4, while losses improved by $700 million year-over-year for the full year. Management expects “Peacock losses to meaningfully improve again” in 2026 as NBA content drives subscriber growth.

Theme Parks: Revenue surged 21.9% to $2.89 billion, with EBITDA crossing $1 billion for the first time in a single quarter. The opening of Epic Universe and continued international expansion should support momentum.

Balance Sheet Supports Dividend Through Cycles

Comcast ended 2025 with net leverage of 2.3x, comfortably within investment-grade territory. Co-CEO Michael Cavanagh emphasized the company’s financial positioning: “We have the financial strength to perform through cycles and create long-term value.”

The recent spinoff of cable networks into Versant Media will temporarily increase leverage ratios, but management stated its “intention will be to migrate back to the 2025 ending leverage of 2.3 times.” Importantly, the Versant transaction was structured as a dividend distribution to shareholders, maintaining Comcast’s dividend growth streak while removing lower-growth assets from the portfolio.

Valuation Suggests Limited Downside Risk

At a trailing P/E ratio of just 6x and trading 20% below its five-year high, Comcast shares appear to price in significant pessimism about the broadband business. The current $32.40 stock price sits just below the $33.06 average analyst target, suggesting limited downside from current levels.

The combination of a 4% yield, conservative payout ratio, and depressed valuation creates an asymmetric risk profile for dividend-focused investors. Even if growth initiatives disappoint, the substantial free cash flow cushion and strong balance sheet should allow Comcast to maintain or potentially grow its dividend through 2026 and beyond.

The post Comcast’s 4.45% Yield Looks Tempting: Should You Take the Bait? appeared first on 24/7 Wall St..

Graco just paid investors $0.295 per share on February 4, 2026, marking the company’s 27th consecutive year of quarterly dividend payments. This industrial equipment manufacturer has quietly built one of the more consistent dividend growth records in the specialty machinery sector, with a 5-year compound annual growth rate of approximately 9.4%. But consistency alone doesn’t tell the full story—investors need to understand whether this dividend is sustainable, how it stacks up against peers, and what the latest financials reveal about Graco’s ability to keep raising payouts.

The Dividend Profile: Modest Yield, Strong Growth

Graco’s current dividend yield sits at just 1.19%, well below the yields offered by traditional income stocks in sectors like telecommunications or consumer staples. AT&T yields 4.05%, Verizon delivers 5.77%, and General Mills offers 4.97%. Even within industrials, Caterpillar’s yield of 0.8% trails Graco by only 39 basis points.

The trade-off becomes clear when examining dividend growth. Graco increased its quarterly payout from $0.275 in Q1 2025 to $0.295 in Q1 2026—a 7.3% year-over-year increase. Compare that to AT&T, which has maintained its quarterly dividend at $0.2775 for 13 consecutive quarters following a 46.6% cut in early 2022. Verizon has raised its dividend for 19 consecutive quarters, but recent increases have been modest—ranging from 1.88% to 3.73%.

Financial Foundation: Cash Flow Tells the Real Story

Dividend sustainability hinges on cash generation, not just reported earnings. Graco generated $683.6 million in operating cash flow during fiscal 2025 while paying out $183.4 million in dividends—a payout ratio of just 26.8%. That coverage ratio of 3.7x provides substantial cushion for continued dividend growth even if business conditions soften.

The company’s free cash flow of $637.9 million (after $45.7 million in capital expenditures) left $454.6 million available after dividend payments. Graco deployed much of that excess cash toward $423.1 million in share repurchases—a capital allocation strategy that prioritizes shareholder returns while maintaining conservative dividend payout ratios.

The earnings picture reinforces this financial strength. Graco reported $521.8 million in net income for fiscal 2025 on revenue of $2.24 billion, translating to a 23.3% net profit margin. That profitability has remained remarkably stable—net margins have held in the 23%+ range across the past three fiscal years despite varying revenue growth rates.

Peer Comparison: Different Strategies, Different Outcomes

Bristol Myers Squibb offers an instructive contrast in dividend strategy. The pharmaceutical giant raised its quarterly dividend to $0.63 in Q1 2026, marking its 17th consecutive annual increase. With a current yield of 4.09%, BMY delivers more than three times Graco’s income—but faces patent cliff concerns on key drugs like Eliquis that could pressure future growth.

CVS Health maintained its quarterly dividend at $0.665 through 2024 and 2025, yielding 3.51%. The healthcare giant generated $105.7 billion in Q4 2025 revenue, but lowered its 2026 cash flow guidance to at least $9 billion amid regulatory investigations and Medicare Advantage reimbursement pressure. That caution reflects the dividend risk that comes with high yields in challenged industries.

AbbVie increased its quarterly dividend by 5.49% to $1.73 effective January 16, 2026, delivering a 2.99% yield with strong growth prospects tied to its immunology portfolio. American Tower raised its quarterly dividend by 4.94% to $1.70, though the REIT’s 3.76% yield comes with real estate-specific risks.

Valuation and Total Return Context

Graco trades at 31x trailing earnings and 30x forward earnings—premium multiples that reflect the market’s confidence in the company’s business model but also limit margin of safety for dividend investors. The stock has delivered 13.45% total return over the past year and 16.66% year-to-date through February 12, 2026.

That price appreciation matters for dividend investors because it affects yield on cost and total return calculations. An investor who bought Graco five years ago at $67.57 has seen the stock climb 41.05% to $95.31 while collecting steadily increasing dividends—a combination that generates meaningful total returns despite the modest current yield.

The Sustainability Verdict

Graco’s dividend earns high marks for sustainability based on three key factors. First, the 26.8% payout ratio relative to operating cash flow provides substantial room for continued increases even if earnings growth moderates. Second, the company’s 23.3% net margin and minimal $2.9 million in annual interest expense indicate a healthy balance sheet without leverage concerns. Third, management’s cautiously optimistic outlook for Q4 2025, noting that “our acquisition pipeline remains strong”, suggests confidence in future cash generation.

The trade-off is straightforward: investors accept a 1.19% current yield in exchange for consistent high-single-digit dividend growth backed by strong free cash flow and disciplined capital allocation. That profile suits investors seeking dividend growth rather than immediate income—a different value proposition than the 4-6% yields available from slower-growth dividend stocks in telecommunications or consumer staples.

Graco’s 27+ year track record of quarterly dividend payments and 5-year compound annual growth rate of 9.4% demonstrates management’s commitment to returning cash to shareholders. With $454.6 million in free cash flow remaining after dividends and a conservative payout ratio, the company has both the capacity and the track record to continue this pattern. For dividend growth investors willing to accept lower current yield in exchange for reliable increases, Graco’s latest payment reinforces that value proposition.

The post This Is Graco’s Dividend Score After Paying Investors appeared first on 24/7 Wall St..

AT&T (NYSE: T) just paid its quarterly dividend of 27 cents per share on Feb. 2, 2026, marking another chapter in the telecom giant’s post-2022 dividend reset. With a 4.08% yield and 2.38x free cash flow coverage, the dividend appears secure. But how does it stack up against nine other income-focused stocks that just paid their shareholders?

AT&T’s Dividend Profile: Recovery Mode

AT&T’s current 27-cent quarterly payout represents a dramatic shift from its pre-2022 level of 52 cent per quarter — a 46.6% reduction that reset the dividend to sustainable levels following the WarnerMedia spinoff. The company has held this rate steady since early 2022, prioritizing balance sheet repair over dividend growth.

The dividend’s safety metrics tell a reassuring story. AT&T generated $40.28 billion in operating cash flow in 2025 against $8.18 billion in dividend payments, producing a 2.38x coverage ratio. That’s a meaningful improvement from the 1.26x coverage in 2022 when the company faced negative net income and structural challenges.

Management confidence appears solid. Multiple executives made open market purchases at $24.84 to $26.02 per share in late 2025, including CFO Pascal Desroches and Chief Strategy Officer F. Thaddeus Arroyo. These purchases occurred well after the dividend cut, suggesting leadership believes the current payout is sustainable at these valuation levels.

The Telecom Peer: Verizon’s Higher Yield, Higher Risk

Verizon (NYSE: VZ) presents an interesting contrast. The company just paid a dividend of 69 cents per share on Feb. 2, equating to a significantly higher yield of 5.91%. Verizon has maintained an impressive streak, increasing its dividend for 19 consecutive years with the most recent 1.47% increase from 68 cents to 69 cents.

But Verizon’s operational picture looks shakier. The company faces leadership turmoil with consumer division head Sowmyanarayan Sampath stepping down, and it’s significantly cutting its 2026 capital budget and workforce. The stock has delivered 23.81% total return over the past year, but the 67.4% payout ratio leaves less cushion than AT&T’s 36.5%.

Dividend Kings: Johnson & Johnson and Procter & Gamble

Johnson & Johnson (NYSE: JNJ) will pay $1.30 per share on March 10, (ex-dividend Feb. 24), representing a 4.8% increase from the prior year’s $1.24 quarterly rate. The healthcare giant’s 2.19% yield may seem modest, but the 46.6% payout ratio and 35.6% return on equity underscore exceptional capital efficiency.

JNJ has increased its dividend for over six decades, with the quarterly payment climbing from $0.54 in 2010 to $1.30 in 2026—a 140.7% increase over 15 years. The stock delivered 61.11% total return over the past year, combining dividend income with substantial price appreciation.

Procter & Gamble (NYSE: PG) paid $1.0568 per share on Feb. 17, up 5.0% from the previous year’s $1.0065 rate. The consumer products giant’s 2.66% yield comes with a 61.3% payout ratio, reflecting its mature business model. PG’s dividend has grown from $0.6695 per quarter in 2016 to $1.0568 in 2026, demonstrating steady compounding even in a low-growth category.

Beverage Giants: Coca-Cola and PepsiCo

Coca-Cola (NYSE: KO) most recent paid 51 cents per share on Dec. 15, 2025, continuing its decades-long dividend growth streak. The company increased its quarterly dividend 5.15% in 2025, from 48 cents to 51 cents, delivering a 2.74% current yield. With a 65.8% payout ratio and 27.3% profit margin, Coca-Cola balances income generation with reinvestment capacity.

The stock has delivered 28.43% total return over the past year, benefiting from both dividend payments and price appreciation. Coca-Cola’s dividend has grown from $0.16 per quarter in 1999 to $0.51 in 2025, a testament to the power of brand moats and global distribution.

PepsiCo (NASDAQ: PEP) will pay $1.4225 per share on March 31, reflecting a 4% increase announced in early February 2026. This marks PepsiCo’s 17th consecutive annual dividend increase, with the quarterly rate rising from $1.355 to $1.4225. The stock returned 21.97% over the past year, though it trails Coca-Cola’s recent performance. Its dividend currently yields 3.34%.

Pharma Yields: AbbVie and Bristol Myers

AbbVie (NYSE: ABBV) has a dividend yielding 3.10%, or $1.73 per share, last paid on Feb. 17, following a 5.5% increase from the prior $1.64 per share rate. The Big Pharma mainstay has aggressively grown its dividend, with the quarterly payment climbing from 40 cents in 2013 to $1.73 in 2026 — a 332.5% increase over 13 years.

However, AbbVie’s 524% dividend payout ratio raises questions and is likely unsustainable. The company’s operating cash flow of $18.8 billion in 2024 covered the $11.0 billion dividend at a 1.71x ratio, but that coverage has tightened from 2.48x in 2022. Recent insider stock equivalent unit acquisitions at $228.49 by three directors in late 2025 suggest board-level confidence, but the lack of open market purchases is notable.

Bristol-Myers Squibb (NYSE: BMY) paid 63 cents per share on Feb. 2, marking its 17th consecutive annual increase. The 4.3% yield comes with a somewhat more sustainable 83.5% payout ratio. The stock delivered 13.35% total return over the past year, benefiting from both dividend income and a 16.18% year-to-date price gain.

The Monthly Dividend Outlier: Realty Income

Realty Income (NYSE: O) operates on a different cadence entirely, paying 27 cents per share monthly with the its next monthly payment coming on Feb. 13. The real estate investment trust (REIT) has a yield of 5.13%, which translates to $3.205 per share annually and is distributed across 12 monthly payments.

The company’s operating cash flow of $3.57 billion in 2024 covered $2.70 billion in dividends at a 1.32x ratio. However, all recent insider activity shows selling rather than buying, with CEO Sumit Roy disposing of 34,866 shares at $56.37 in late December 2025 and early January 2026. The concentrated year-end selling by multiple executives warrants monitoring, though the timing suggests routine equity compensation management rather than fundamental concerns.

The Value Play: General Mills

General Mills (NYSE: GIS) paid 61 cents per share on Feb. 2, equating to a 4.99% yield — the highest among the non-REIT stocks in this comparison. The packaged foods company increased its quarterly dividend from 60 cents to 61 cents, good for a modest increase of 1.67%.

The 52.04% payout ratio provides substantial coverage, but the stock has struggled with -15.23% total return over the past year. General Mills faces -45.8% quarterly earnings growth year-over-year and -7.2% revenue decline, reflecting broader pressures in the packaged foods category.

The Verdict: Yield, Growth, and Sustainability

AT&T’s 4.08% yield sits in the middle of this pack, but its dividend story is fundamentally about rebuilding credibility after the 2022 cut. The 2.38x free cash flow coverage provides meaningful cushion, and the company’s strategic partnerships with Amazon Web Services and Amazon Leo satellite network position it for potential revenue growth.

Compared to Verizon’s higher yield but tighter coverage and operational challenges, AT&T appears relatively better positioned despite its lack of recent dividend growth. The Dividend Kings like Johnson & Johnson and Procter & Gamble offer lower yields but unmatched reliability and growth track records. AbbVie and Bristol Myers provide higher yields with pharmaceutical sector exposure, while Realty Income’s monthly payments appeal to income-focused investors seeking regular cash flow.

For investors prioritizing yield stability over growth, AT&T’s reset dividend offers a reasonable middle ground—not the highest yield, but backed by improving cash flow metrics and insider confidence. The real question is whether management will resume dividend increases or continue prioritizing debt reduction and network investment in the 5G era.

The post Here’s How We Scored AT&T’s Move Recent Dividend to Shareholders appeared first on 24/7 Wall St..

Financial objectives and risk tolerance will, as you’re probably well aware, change as individuals progress through the various stages of life. Investing at 60+ simply isn’t the same as investing at 30, 40, or 50.

Indeed, seasoned investors will often look to dividend stocks as passive income sources that they can hold forever. It’s a smart strategy, but only as long as you’re picking the best and avoiding the rest. This may be easier said than done, though.

To set you in the right direction for your 60s, 70s, and beyond, I’m glad to bring you three dividend stocks that feature high yields for powerful income potential. At the same time, the focus will be on quality first and yield second because you shouldn’t have to lose sleep over your investments.

Kinder Morgan (KMI)

A great place to hunt for impressive yield is in the energy sector. Oil and natural gas pipeline company Kinder Morgan (NYSE:KMI) stands out as a well-established energy infrastructure business offering an enticing dividend.

It’s understandable if you’re in the market for growth and reliability at age 60+, so KMI stock checks all the right boxes. This stock has more than doubled during the past five years, and that doesn’t even include the dividend payments.

There’s no realistic scenario in which the world will stop needing energy infrastructure. Kinder Morgan remains a thriving business in this context, and impressively, the company grew its fourth-quarter 2025 earnings per share (EPS) by 50% year over year to $0.45.

Think about it: as long as there is a strong demand for artificial intelligence (AI) data centers, there will also be a relentless need for energy. That’s one reason Kinder Morgan is a profitable and dependable income producer — and since Kinder Morgan offers a 3.89% annual dividend yield, today is a great day to conduct your due diligence on KMI stock.

AT&T (T)

Turning now to the telecommunications market, you’d be hard-pressed to find a bigger fish in the pond than AT&T (NYSE:T). At age 60 and above, it makes sense to stick to blue-chip stocks and companies, and T stock fits right into this category.

Since we’re choosing quality over hype, it’s reassuring to know that AT&T is a reliable income grower that’s in a strong financial position. Notably, the company grew its fourth-quarter 2025 operating income by 9.5% year over year to $6.776 billion.

Looking at the bigger picture, AT&T increased its operating income from $19 billion in 2024 to $24.2 billion in 2025. Suffice it to say, then, that AT&T is a mainstay in the telecommunications market that won’t run out of capital anytime soon.

At this point, you’re probably curious about AT&T’s dividends, so I won’t make you wait any longer. As it turns out, AT&T offers a forward annual dividend yield of 4.08%, which is competitive among mega-cap firms nowadays.

The takeaway, even beyond the cogent case for owning AT&T stock if you’re 60+, is that you don’t have to settle for ultra-risky stocks just because you want high yield. You can really have your cake and eat it too, as long as you’re conducting your full due diligence and only choosing top-tier businesses to invest in.

Duke Energy (DUK)

To complete our trio of high-yield selections for investors who are 60 or above, I’ll give you a stock in the utilities sector. It’s a large electric company known as Duke Energy (NYSE:DUK), and this pick is as sensible and solid as it gets.

You might or might not know about Duke Energy, but as a savvy investor, you’ll want to check it out. Amazingly. Duke Energy’s electric utilities serve 8.6 million customers and the company’s natural gas utilities serve 1.7 million customers across multiple U.S. states.

Before mentioning the dividend yield that DUK stock offers, we need to stay in the habit of looking at financials first. The good news is that Duke Energy grew its third-quarter 2025 EPS by more than 11% year over year to $1.81 (Q3 2025 is the company’s most recently released quarter of financial data).

That’s a noteworthy growth rate, and besides, it’s fairly low-risk to invest in an established electric company like Duke Energy. To sweeten the deal, Duke Energy stock features a 3.49% dividend yield so you can really enjoy those cash distributions.

As we’ve discovered, KMI, T, and DUK stocks truly are ideal for those investors who happen to be 60+. You’re invited to give one, two, or all three of these assets a place in your “buy now and collect the dividends forever” portfolio.

The post 3 High-Yield Dividend Stocks Perfect For Those 60+ Years appeared first on 24/7 Wall St..

Lumen Technologies (NYSE: LUMN) reports FY2025 full-year and Q4 earnings today after market close at 4:01 p.m. EST. Wall Street expects a loss of 21 cents to 27 cents per share on revenue of $3.04 to $3.08 billion, representing a 7.4% to 8.6% year-over-year (YOY) decline. Shares have surged 80% over the past year, dramatically outperforming the broader communication services sector.

The Numbers That Matter

Wall Street expects Lumen to post another quarterly loss as the company navigates its transformation from legacy telecom to AI-focused infrastructure provider. The midpoint revenue estimate of approximately $3.06 billion would mark the fourth consecutive quarter of YOY revenue declines.

The Beat Threshold:

A meaningful beat requires revenue exceeding $3.10 billion paired with a smaller-than-expected loss of 10 cents per share or better. The company’s beta of 1.54 suggests elevated sensitivity to sector movements and earnings surprises.

Historical Context:

Lumen has demonstrated mixed execution recently. In Q3 2025, the company missed revenue estimates by $12.6 million but beat on adjusted EPS by 7 cents, posting a loss of 20 cents versus the expected 27-cent loss. The stock moved from around $11 at the Q3 filing to the current $8.98, reflecting investor uncertainty about the transformation timeline.

What Happened Last Quarter

3 Key Takeaways from Q3:

• Free cash flow reached $1.66 billion, significantly exceeding expectations and demonstrating strong operational cash generation despite revenue headwinds.
• The company secured $1 billion in new Private Connectivity Fabric deals, validating demand for AI-focused network infrastructure.
• Lumen completed a $2.4 billion debt refinancing saving $135 million annually, addressing a critical balance sheet concern.

Management’s Promise:

Last quarter, CEO Kate Johnson stated the company would achieve the high end of the Adjusted EBITDA range for full-year 2025 due to modernization progress. This Q4 report will reveal whether that guidance held through year-end.

The Sector Setup

Major telecom peers have reported mixed results this season. The sector faces ongoing pressure from legacy business declines offset by growth in fiber and enterprise services. Lumen’s closest competitors, including Verizon and AT&T, which combine for 23% of the iShares U.S. Telecommunications ETF, have emphasized network infrastructure investments to support AI workloads.

While AI-driven demand for connectivity creates tailwinds, traditional telecom revenue continues eroding. Lumen’s Mass Markets segment fell 8% year-over-year in Q3, while North America Business declined 3%.

What Could Move the Stock

Bull Case Triggers:

• Revenue stabilization above $3.10 billion with guidance suggesting the decline is bottoming
• New Private Connectivity Fabric bookings exceeding $1.5 billion, indicating accelerating AI infrastructure demand
• Free cash flow maintaining the $1.6 billion quarterly pace, supporting debt reduction

Bear Case Triggers:

• Revenue falling below $3.0 billion, suggesting faster-than-expected legacy business deterioration
• Adjusted EBITDA declining more than 15% year-over-year, indicating margin pressure
• Cautious commentary on 2026 outlook or delays in fiber expansion projects

The Wild Cards:

Lumen just closed its $5.75 billion sale of Mass Markets fiber assets to AT&T on February 2, which will reduce debt by approximately $4.8 billion and lower annual interest expenses by $300 million. Management commentary on how this transaction reshapes the company’s financial profile will be critical. Additionally, Lumen’s January 27 announcement of ISO 42001 AI governance certification positions the company as an early adopter of formal AI standards, potentially differentiating it in enterprise sales.

What Analysts Are Watching

Analyst sentiment remains divided. The consensus rating sits at Hold with an average price target of $7.78, suggesting potential downside from current levels. However, Zacks upgraded Lumen to Strong Buy on Jan. 10, citing transformation progress.

The Metric That Really Matters:

Analysts are focused on adjusted EBITDA this quarter. Lumen generated $787 million in Q3, down from $899 million in Q3 2024. A result above $800 million would signal that cost discipline and new revenue streams are offsetting legacy declines. Anything below $750 million would raise concerns about the sustainability of the turnaround.

Lumen has delivered strong cash generation despite ongoing losses, and this report will test whether the AI infrastructure thesis can offset traditional telecom headwinds. With shares trading at 0.72x sales, below the sector average, investors are pricing in execution risk. The key question: Can management demonstrate that revenue stabilization is within reach as the AT&T transaction removes consumer fiber drag from future results?

The post Up 80% Over the Past Year, Can Lumen Technologies Keep the Momentum Going appeared first on 24/7 Wall St..

Social Security was originally designed to be a supplemental form of retirement income. Under the three-legged stool model, retirees ideally live on a combination of employer pensions (or more likely 401(k)s and IRAs), personal savings and Social Security. But many retirees struggle to make ends meet, with some relying solely on Social Security.

Whatever your situation, there are ways to offset income when Social Security and other sources fall short. Here are some of the most common choices.

No. 1: Continue to Work

Retirement by definition means stopping work. But many senior citizens — whether by choice or necessity — continue to work for income past retirement age. Many take part-time jobs while others put in 40 hours per week. For some, side hustles that they enjoyed while working full time continue. Others find consulting gigs related to their careers.

It’s important to remember that receiving income impacts your Social Security benefits. If you are under full retirement age, the Social Security Administration (SSA) deducts $1 from your benefit payments for every $2 you earn above the annual limit, which is currently $24,480. That low threshold encourages many to delay receiving benefits.

In the year you reach full retirement age (FRA), SSA deducts $1 for every $3 you earn above $65,160. Once you reach full retirement age (67 for most people), you can earn as much as you want without penalty.

No. 2: Delay Full Retirement

This tactic obviously relates to No. 1. If you foresee an income shortfall, it can be smart to continue working to full retirement age. If you start collecting S.S. benefits before you reach FRA, you’ll receive less money each month.

How much less? It depends on your lifetime earnings history and at what age you start Social Security before FRA. If you retire at age 62 (the earliest age at which you can apply), the maximum amount you could receive is $2,969. If you retire at FRA, your maximum benefit could be $4,152. And if you retire at age 70, that maximum payment hits $5,181.

It’s a timing game: When is the best time to start collecting benefits based on your personal financial and health situation? Some retirees consult with professional financial advisers to make these decisions.

No. 3: Seek Income-Producing Investments

Ask any older investor about their portfolio, and they’re likely to mention dividends, which are regular payments from a company’s profits. This is a way to receive income, often quarterly but sometimes monthly, in addition to the appreciation of an investment.

You can buy individual stocks that offer dividends, such as The Coca-Cola Co. (KO), General Dynamics (GD), or AT&T Inc. (T). Or you can buy diversified buckets of stocks that pay dividends, in the form of mutual funds or exchange-traded funds (ETFs). A few examples: Schwab U.S. Dividend Equity ETF (SCHD), Vanguard High Dividend Yield ETF (VYM), and iShares Core Dividend Growth ETF (DGRO).

No. 4: Cut Costs

This is a no-brainer and something many people do or plan to do in retirement. A lot of these monthly expense cuts come naturally. Often, mortgages are paid off and/or the decision is made to downsize your home. Commuting and other work-related costs go away. Children, ideally, are self-supporting adults.

The stereotype of retirees moving to sunnier locales holds some truth. Not only do you get better weather, you often also find a lower cost of living and lower taxes. And if you prefer cooler climates, there are plenty of places that are cheaper than the expensive urban areas where many of us live.

No. 5: Consider an Annuity

These aren’t the best investment tools for all retirees, but some like the guaranteed income they offer and the insurance benefit. If you’re considering an annuity, do your due diligence. Many have high fees and hidden costs.

The post 5 Ways Retirees Can Offset Income When Social Security Falls Short appeared first on 24/7 Wall St..

Retiring at 67 with $6,500 in monthly income places you solidly in middle-class territory, but the financial reality behind that figure is more nuanced than it appears. The average Social Security retirement benefit reached approximately $2,083 per month as of May 2026, up from $2,071 at the start of the year after the 2.8% cost-of-living adjustment took effect. A retiree targeting $6,500 therefore needs to generate roughly $4,417 monthly, or about $53,004 annually, from personal savings and investments. The critical question is how you structure your portfolio to deliver that income sustainably for 20 to 30 years.

The Portfolio Math That Matters

To generate roughly $53,000 annually from investments, you need somewhere between $1.1 million and $1.4 million in retirement savings, depending on your withdrawal strategy. The traditional 4% rule points to a portfolio of roughly $1.33 million. That said, Morningstar’s 2025 State of Retirement Income report identifies 3.9% as the highest safe starting withdrawal rate for retirees seeking consistent inflation-adjusted spending over a 30-year period, assuming a 90% probability of having funds remaining at the end. At that rate, the required portfolio climbs to approximately $1.36 million. The rule’s own creator, Bill Bengen, has revised his figure upward to 4.7%, which would reduce the needed nest egg to around $1.13 million, though that assumes a well-diversified portfolio including small- and mid-cap equities.

Many retirees lean toward dividend-focused strategies instead. A portfolio yielding 4.2% would require approximately $1.27 million, while a more aggressive 5% yield strategy drops the requirement to about $1.06 million. Worth noting: Morningstar found that retirees willing to adjust spending in response to market conditions can push their starting withdrawal rate as high as 5.7%, offering meaningful flexibility for those who plan carefully.

The tradeoff in high-yield strategies is real. Altria (NYSE:MO | MO Price Prediction) and Verizon (NYSE:VZ) can dramatically reduce the capital required for retirement income, but both carry meaningful risks that income investors must weigh carefully. Verizon’s stock currently yields approximately 6.1%, and the company has raised its dividend for twenty consecutive years, most recently announcing a 2.5% quarterly hike to $0.71 per share in January 2026. Altria, meanwhile, pays an annualized $4.24 per share at a current yield of roughly 5.8%, and the company targets a payout ratio of approximately 80% of adjusted earnings per share. The AT&T 46% dividend cut in 2022 remains a standing reminder that yield sustainability matters far more than yield size.

Building a Balanced Strategy

The most resilient retirement portfolios blend yield with growth. Dividend Kings like Johnson & Johnson (NYSE:JNJ) and Coca-Cola (NYSE:KO) offer lower immediate income but protect purchasing power through capital appreciation and consistent dividend growth. Johnson & Johnson raised its quarterly dividend from $1.30 to $1.34 per share in April 2026, a 3.1% increase that marked the company’s 64th consecutive year of dividend increases. The progression over recent years ran from $1.19 in 2023 to $1.24 in 2024, then to $1.30 in 2025, and now $1.34 in 2026, a cumulative increase of roughly 12.6% over three years that has helped income keep pace with inflation. At the new annualized rate of $5.36 per share, Johnson & Johnson’s current dividend yield sits at approximately 3.2%, which is nearly double the healthcare sector average.

Energy stocks like ExxonMobil (NYSE:XOM) and Chevron present a middle path, delivering 3% to 4% yields alongside the potential for strong capital gains. Commodity exposure does introduce volatility that retirees must weigh carefully. Utilities such as Southern Company and Duke Energy provide defensive stability with yields in the 3% to 4% range and moderate growth, functioning as portfolio ballast during market turbulence. A thoughtfully blended allocation across these categories can generate target income without concentrating risk in any single sector.

What This Means for Your Strategy

At $6,500 monthly, you are navigating the space between financial comfort and real constraint. Tax efficiency becomes critical at this income level. For 2026, qualified dividends face a 0% federal tax rate for single filers with taxable income under $49,450 and for married couples filing jointly with income under $98,900, per IRS Revenue Procedure 2025-32. Strategic income planning around those thresholds can preserve a meaningful share of your distributions each year. Diversification across sectors guards against single-stock dividend cuts, while maintaining six to twelve months of cash reserves prevents forced selling during market downturns.

The primary risk in an income-focused retirement portfolio is chasing yield without considering total return. A high yield that erodes principal or gets cut defeats the purpose. A portfolio anchored by quality dividend growers, supplemented selectively with higher-yielding positions, offers the most durable path to sustainable income. Your $6,500 monthly target is achievable, but only if you build the foundation designed to support it for decades rather than years.

Editor’s note: This update refreshes the average Social Security benefit to approximately $2,083 per month (May 2026 SSA data, up from $2,071 at the January 2026 COLA start), adjusts Verizon’s current yield to approximately 6.1% and consecutive increase streak to twenty years, corrects Altria’s yield to approximately 5.8% reflecting its current share price, updates Johnson & Johnson’s yield to approximately 3.2% with its annualized $5.36 per share payout, and adds Morningstar’s finding that flexible withdrawal strategies can support starting rates as high as 5.7%.

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Pre-Market Stock Futures:

The futures are little changed after a blockbuster day to open the first full trading week of 2026. The combination of no Santa Claus rally, the market shrugging off the capture of Venezuelan dictator Maduro, then embracing the action, plus some big pent-up money sitting on the sidelines, all helped to propel stocks dramatically higher on Monday. With a slew of economic data and fourth-quarter earnings (expected to be solid) on the way, investors may be resetting portfolios for the first quarter and beyond. The Dow Jones Industrials helped lead the way, surging 1.23% to close at 48,977, while the S&P 500 closed the session at 6,902, up 0.64%, followed by the Nasdaq, which was last seen on Monday at 23,395, up 0.69%. The star of the day was the Russell 2000, which finished trading up a whopping 1.58% at 2,547. Many feel small and midcap stocks could outperform this year, playing catch-up after being somewhat of an afterthought the last few years.

Treasury Bonds:

After a rough day on Friday, buyers returned to the Treasury market on Monday, driving yields down across the curve. Traders and analysts noted the strength on Monday was primarily due to surprisingly weak U.S. manufacturing data (ISM report) and bullish option trades betting on lower yields, alongside ongoing global factors like Bank of Japan policy shifts and market anticipation of future Federal Reserve actions and strong economic data. The 30-year bond closed at 4.84%, while the benchmark 10-year note finished at 4.16%.

Oil and Gas:

Prices were up across the energy complex on Monday as the capture of Maduro and the potential for significant oil investment in Venezuela were embraced as huge positives by traders. Brent Crude closed the day up 1.78% at $61.30, while West Texas Intermediate finished the session up 1.74% at $58.32. The only loser on the day was natural gas, which closed down 2.63% at $3.52. Despite massive LNG sales in 2025 and cold weather over much of the country, the sellers were back in force. 

Gold:

Not willing to be left behind, Gold continued its relentless push higher, closing on Monday at $4,448, up 2.72%, while Silver continued to rage higher, finishing the day up a stunning 5.19% at $76.55. Continued industrial demand, combined with a surge in retail and institutional buying, kept a strong tailwind behind the precious metals. Many firms are raising their end-of-year Gold target to the $ 4,900-$5,000 range.

Crypto:

Last, but certainly not least, after a difficult fourth quarter, the crypto market saw a significant uplift on Monday, with Bitcoin breaking above $92,000 and briefly touching $93,000 before running higher, its highest level in four weeks. Traders cited oversold conditions and some short-covering. Top crypto traders noted that the market is attempting to consolidate at higher levels, with some analysts noting a return to monthly highs and a break above the 50-day moving average. At 8A EST, Bitcoin was trading at $93,850, while Ethereum was trading at $3,237. 

24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. 

Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Tuesday, January 6, 2026. 

 Upgrades:

• Brinker International Inc. (NYSE: EAT) was upgraded to Buy from Neutral at UBS, which lifted the target price for the restaurant giant to $175 from $144.
• Brunswick Corp. (NYSE: BC) was raised to Buy from Hold at Jefferies, which boosted the target price on the stock to $115 from $65.
• ServiceNow Inc. (NYSE: NOW) was raised to Buy from Neutral at Arete, which has a $200 target price for the stock.
• Shake Shack Inc. (NYSE: SHAK) was upgraded to Buy from Hold at Deutsche Bank with a $108 price target objective.
• SLB NV (NYSE: SLB) was upgraded to Outperform from In Line at Evercore ISI, which lifted the target price for the stock to $54 from $38.
• Styrker Corp. (NYSE: SYK) was upgraded to Outperform from Market Perform at Raymond James with a $418 target price.

Downgrades:

• AT&T Inc. (NYSE: T) was downgraded to Sell from Neutral at Arete with a $20 target price objective.
• D.R. Horton Inc. (NYSE: DHI) was cut to Equal Weight from Overweight at Wells Fargo, which has a $155 target price for the homebuilder.
• KeyCorp (NYSE: KEY) was downgraded to Underperform from Neutral at Baird, with an $18 target price.
• Shopify Inc. (NASDAQ: SHOP) was downgraded to Peer Perform from Outperform at Wolfe Research, which removed the firm’s $185 target price.
• Wells Fargo & Co. (NYSE: WFC) was downgraded to Underperform at Neutral at Baird, which keeps the target price for the bank at $90.
• Zimmer Biomet Holdings Inc. (NYSE: ZBH) is cut to Market Perform from Outperform at Raymond James with a $103 target price.

Initiations:

• Apple Hospitality REIT Inc. (NYSE: APLE) was started with an Overweight rating at Barclays with a $14 target price.
• CoreWeave Inc. (NASDAQ: CRWV) was started with a Hold rating at Truist with an $84 target price.
• Digital Realty Trust Inc. (NYSE: DLR) was initiated with a Buy rating at Deutsche Bank, which has set a $180 target price for the shares.
• Lemonade Inc. (NYSE: LMND) was initiated with a Buy rating at Truist with a $98 target price.
• Palantir Technologies Inc. (NASDAQ: PLTR) was initiated with a Buy rating at Truist, which has set a $223 target price for the stock.
• SoFi Technologies Inc. (NASDAQ: SOFI) was resumed in coverage withan Underperform rating at Bank of America with a $20.50 target price.

The post Here Are Tuesday’s Top Wall Street Analyst Research Calls: AT&T, CoreWeave, Digital Realty, Palantir Technologies, ServiceNow, Shopify, SoFi Technologies, and More appeared first on 24/7 Wall St..

Verizon (NYSE: VZ) and AT&T (NYSE: T) just reported Q3 results revealing two telecom giants chasing different growth paths. Verizon leaned on wireless pricing discipline and a new CEO’s customer-first mandate. AT&T bet on fiber broadband convergence and a massive spectrum purchase to fuel its 5G future.

Wireless Carries Verizon. Fiber Lifts AT&T.

Verizon posted $33.82B in revenue, missing estimates of $35.31B but growing 1.5% year-over-year. Wireless service revenue climbed 2.1% to $21.0B, driven by pricing power. Equipment revenue jumped 5.2% to $5.6B as device upgrade cycles accelerated. Net income surged to $5.06B from $3.41B a year earlier. New CEO Dan Schulman emphasized a culture shift toward customer retention, signaling Verizon will prioritize quality over aggressive acquisition.

AT&T delivered $30.70B in revenue, slightly below the $30.89B estimate, with 1.6% growth. Mobility service revenue rose 2.3% to $16.9B, but fiber broadband surged 16.8% to $2.2B. CEO John Stankey highlighted convergence success: 41% of fiber households now bundle AT&T Mobility service, underscoring the strategy to lock customers into multi-product ecosystems. Net income hit $9.7B, though $9.3B came from the DIRECTV sale. Free cash flow reached $4.9B, and AT&T repurchased $1.5B in shares while announcing a $23B spectrum acquisition from EchoStar to bolster 5G capacity.

One Defends Premium Wireless. One Bets on Convergence.

Verizon’s strategy centers on protecting its premium network positioning. The company raised its dividend for the 19th consecutive year, reinforcing its appeal to income investors with a 6.77% yield. Guidance projects wireless service revenue growth of 2.0% to 2.8% and adjusted EBITDA growth of 2.5% to 3.5%, with free cash flow expected between $19.5B and $20.5B. Operating margins stand at 23.9%, the highest among peers, but profit margins lag AT&T at 14.4% versus 17.9%. High debt limits flexibility for aggressive expansion.

AT&T is pursuing a convergence play tying fiber internet to mobile service. Fiber revenue growth of 16.8% outpaces the broader industry, and the 41% convergence rate suggests the strategy is working. Guidance calls for mobility service revenue growth above 3% and fiber revenue growth in the mid-to-high-teens range, both ahead of Verizon’s projections. The $23B spectrum deal positions AT&T to compete more aggressively in 5G, though it adds near-term financial pressure. Business Wireline continues to decline due to legacy product erosion.

T-Mobile and Comcast Add Context

T-Mobile (NASDAQ: TMUS) posted $21.96B in revenue, up 8.9%, and added 2.3M postpaid customers, its best Q3 in a decade. Service revenue grew 9%, and the company raised guidance for postpaid adds to 7.2M to 7.4M. T-Mobile’s aggressive customer growth pressures both Verizon and AT&T to justify premium pricing. Comcast (NASDAQ: CMCSA) reported $31.20B in revenue, down 2.7%, highlighting the threat AT&T’s fiber push poses to cable broadband incumbents.

I’m Watching Fiber Momentum and Spectrum Execution

AT&T offers upside tied to fiber and convergence. The 16.8% fiber growth rate and rising bundle penetration suggest a durable competitive advantage Verizon lacks. AT&T’s PEG ratio of 1.00 versus Verizon’s 1.97 signals better growth potential relative to valuation. However, the $23B spectrum commitment introduces execution risk, and Business Wireline remains a headwind.

Verizon fits income-focused investors better. The 6.77% yield and 19-year dividend streak provide stability, and the company’s premium network reputation supports pricing power. But if fiber convergence proves as sticky as AT&T’s numbers suggest, Verizon may struggle to justify its premium without a comparable growth engine.

The post One Telecom Giant Raised Its Dividend for the 19th Year While Its Rival Splurged on a Massive Spectrum Deal appeared first on 24/7 Wall St..

All the major Wall Street firms we cover here at 24/7 Wall St. have a list of top stock picks for their institutional and retail clients to invest in. Typically, these are companies that analysts have a high level of conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have a substantial upside to the assigned price target and have either a Buy or Overweight rating, depending on the company providing the coverage.

After a furious summer and fall rally off the April lows, and with all of the major indices trading at or near all-time highs, many investors are treading carefully in front of 2026, so we were very interested to see which stocks were on the December edition of J.P. Morgan’s Analyst Focus List. The research team at J.P. Morgan updates this list monthly, as the company describes:

The U.S. Analyst Focus List is updated monthly. Names may be removed mid-month when a valuation target has been largely or wholly achieved, or the original rationale is no longer valid. New ideas can also be added mid-month. Analysts will publish the explanation for all mid-month changes in a research note.

We screened the December Analyst Focus List looking for J.P. Morgan’s top high-yield stock picks, and five of our favorite companies made the list. All make sense for growth and income investors looking for the top ideas from the best Wall Street firms.

Why do we recommend J.P. Morgan’s Analyst Focus List stocks?

J.P. Morgan is one of the acknowledged leaders in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come.

Annaly Capital

With a massive 12.30% dividend yield and trading right near the J.P. Morgan target price, this is a total passive-income play. Annaly Capital Management Inc. (NYSE: NLY) is a diversified capital manager with investment strategies across mortgage finance.

The company owns a portfolio of real estate-related investments, including:

• Mortgage pass-through certificates
• Collateralized mortgage obligations
• Credit risk transfer (CRT) securities
• Securities representing interests in or obligations backed by pools of mortgage loans, residential mortgage loans, and mortgage servicing rights

Its investment groups include:

• Annaly Agency Group, which invests in agency mortgage-backed securities collateralized by residential mortgages.
• Annaly Residential Credit Group, which invests in non-agency residential mortgage assets within residential and commercial markets.
• Annaly Mortgage Servicing Rights Group, which invests in MSR, which grants the right to service residential mortgage loans in exchange for a portion of the interest payments on those loans.

The J.P. Morgan price target is $22 and is likely to go higher.

AT&T

The world’s fourth-largest telecommunications company, measured by revenue, has been undergoing a lengthy restructuring process but has maintained a solid dividend of 4.47%. Seventeen analysts have given AT&T Inc. (NYSE: T) stock a Buy rating, indicating comprehensive Wall Street support. AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• SecuT
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services.

It markets its communications services and products under these banners:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a $33 price target for the stock.

Best Buy

Concerns over tariffs and other issues have affected this retailing giant. Still, with a hefty 5.22% dividend, a favorable entry point for new investors, and the holiday shopping season here, this presents a total-return home run. Best Buy Co. Inc. (NYSE: BBY) operates in two segments: Domestic and International.

The Domestic segment comprises its operations in all states, districts, and territories of the United States and its Best Buy Health business, and includes the brand names:

• Best Buy
• Best Buy Ads
• Best Buy Business
• Best Buy Essentials
• Best Buy Health
• Current Health
• Geek Squad
• Imagine That
• Insignia
• Lively
• My Best Buy
• My Best Buy Memberships
• Pacific Kitchen and Home
• Tech Liquidators
• Yardbird

The company’s domain names are bestbuy.com, currenthealth.com, lively.com, techliquidators.com, and yardbird.com.

The International segment comprises all operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad, and TechLiquidators, as well as the domain names bestbuy.ca and techliquidators.ca.

Best Buy’s product categories include computing and mobile phones, consumer electronics, appliances, entertainment, services, and others.

J.P. Morgan has an $89 price target for the stock.

Broadstone Net Lease

With a substantial 6.71% dividend yield and a robust portfolio, this real estate investment trust (REIT) is a compelling investment option, especially given the expectation that interest rates will remain low. Broadstone Net Lease Inc. (NYSE: BNL) is an industrial-focused, diversified net lease REIT. The company invests primarily in single-tenant commercial real estate properties that are net leased to a diversified group of tenants on a long-term basis. It is mainly diversified across industrial and retail property types.

Under the industrial property type, it includes:

• Manufacturing
• Distribution and warehouse
• Food processing
• Flex
• Research and development
• Cold storage
• Services

The retail property type includes:

• General merchandise
• Casual dining
• Quick-service restaurants
• Automotive
• Animal services
• Home furnishings
• Healthcare services
• Education

Under Other property type, it includes offices and clinical/surgical facilities.

The company’s portfolio comprises approximately 766 properties, including 759 located in 44 U.S. states and seven in four Canadian provinces.

The J.P. Morgan price target for the stock is $21.

Regency Centers

Regency Centers Corp. (NASDAQ: REG) is a REIT based in Jacksonville, Florida, and is one of the largest shopping center operators. It is a fully integrated real estate company and a self-administered and self-managed real estate investment trust with a solid 4.16% dividend.

The company conducts all its operations through Regency Centers L.P. It is engaged in acquiring, developing, owning, and operating income-producing retail real estate principally located in suburban trade areas with compelling demographics within the United States. Its portfolio comprises approximately 488 properties, including:

• Amerige Heights Town Center
• Friars Mission Center
• Navajo Shopping Center
• Point Loma Plaza
• Rancho San Diego Village
• Scripps Ranch Marketplace
• The Hub Hillcrest Market
• Twin Peaks
• 200 Potrero
• Bayhill Shopping Center
• Clayton Valley Shopping Center
• Diablo Plaza
• Encina Grande
• Plaza Escuela
• Pleasant Hill Shopping Center
• Potrero Center
• Corral Hollow
• Serramonte Center
• Bridgepark Plaza
• Mercantile West
• Mercantile East
• Terrace Shops
• Sendero Marketplace

J.P. Morgan has an $81 price objective for the stock.

Goldman Sachs Adds Red-Hot Gaming and Technology Stocks to December Conviction List

The post JP Morgan Has 5 Sizzling December Analyst Focus List High-Yield Dividend Picks appeared first on 24/7 Wall St..

Investors love high-yield dividend stocks, especially the blue chip variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Let’s examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 − $20) = 13%. This combines price appreciation and dividends received.

Blue chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of the state of the economy. The term “blue chip” originated in poker, where it refers to the highest-value chip.

We screened our 24/7 Wall St. blue chip dividend stock database, looking for quality companies that pay at least a 4% dividend. Five companies hit our screens, and all offer growth and income investors a solid opportunity to generate passive income and total return. All five are rated Buy at the top Wall Street firms we cover.

Why do we cover blue chip dividend stocks?

Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

AT&T

This legacy telecommunications company is the world’s fourth largest, measured by revenue, and has been undergoing a lengthy restructuring process. AT&T Inc. (NYSE: T) has maintained a solid dividend of 4.35%. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support. The company provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services.

AT&T markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

Raymond James has a Strong Buy rating with a $33 price target for the stock.

Bristol-Myers Squibb

This global biopharmaceutical company is committed to discovering, developing, and delivering transformative medicines for patients with serious diseases across oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas. Bristol-Myers Squibb Co. (NYSE: BMY) remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable 5.14% dividend.

Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics. Small-molecule drugs are typically administered orally in tablet or capsule form, although other drug-delivery mechanisms are also used. Biologics are usually administered by injection or intravenous infusion. And CAR-T cell therapies are administered by intravenous infusion.

Its growth portfolio includes:

• Opdivo
• Opdivo Qvantig
• Orencia
• Yervoy
• Reblozyl
• Opdualag

Bristol-Myers Squibb’s legacy portfolio includes:

• Eliquis
• Revlimid
• Pomalyst/Imnovid
• Sprycel
• Abraxane

Jefferies has a Buy rating with a $68 price target.

General Mills

This is one of the best values in the blue chip group, with products that are always in favor and a hefty 5.25% dividend. General Mills Inc. (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods. Its segments include:

• North America Retail
• International
• North America Pet
• North America Foodservice

The North America Retail segment reflects business with a variety of:

• Grocery stores
• Mass merchandisers
• Membership stores
• Natural food chains
• Drug, dollar, and discount chains
• Convenience stores
• E-commerce grocery providers

The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.

The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.

The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.

Bank of America has a Buy rating and a $61 price objective.

Kimberly-Clark

Kimberly-Clark Corp. (NYSE: KMB) is an American multinational personal care corporation that produces mostly paper-based consumer products. This consumer staples leader is a safe bet for nervous investors, as it pays a hefty 4.68% dividend. It operates through three segments

The Personal Care segment offers a diverse range of products, including:

• Disposable diapers
• Swim pants, training and youth pants, baby wipes
• Feminine and incontinence care products, as well as related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depends, Plenitud, Softex, Poise, and other brand names

The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins, and related products under the brand names.

• Kleenex
• Scott
• Cottonelle
• Viva
• Andrex
• Scottex
• Neve

The K-C Professional segment offers wipers, tissues, towels, apparel, soaps, and sanitizers under the Kleenex, Scott, WypAll, Kimtech, and KleenGuard brands.

Kimberly-Clark recently announced it is acquiring Kenvue Inc. (NYSE: KVUE) in a $48.7 billion deal that is expected to close in the second half of 2026. The acquisition will create a combined consumer health and wellness company, with Kenvue shareholders receiving cash and stock. Kenvue shareholders will get $3.50 in cash plus 0.14625 shares of Kimberly-Clark stock for each Kenvue share they own.

Argus has a Buy rating with a $120 target price.

Prudential Financial

Prudential Financial Inc. (NYSE: PRU) offers a range of insurance, investment management, and other financial products and services. With a rich 4.90% dividend yield, this insurance and investment giant is a safe option for conservative investors. Prudential operates through five segments:

• PGIM
• Retirement Strategies
• Group Insurance
• Individual Life
• International Business segments

The PGIM segment offers investment management services and solutions related to public fixed income, public equity, real estate debt and equity, private credit, and other alternatives, as well as multi-asset class strategies, to institutional and retail clients and its general account.

The Retirement Strategies segment provides a range of retirement investment and income products and services to retirement plan sponsors in the public, private, and not-for-profit sectors. It develops and distributes individual variable and fixed annuity products.

The Group Insurance segment offers:

• Various group life plans
• Long-term and short-term group disability
• Group corporate, bank, and trust-owned life insurance in the United States, primarily for institutional clients, for use in connection with employee and membership benefits plans
• Accidental death and dismemberment, and other supplemental health solutions
• Plan administration services in connection with its insurance coverages

The Individual Life segment develops and distributes variable life, universal life, and term life insurance products.

The International Businesses segment develops and distributes life insurance, retirement products, investment products, specific accident and health products, and advisory services. The company provides its products and services to individual and institutional customers through its proprietary and third-party distribution networks.

Jefferies has a Buy rating with a $136 target price.

Our December High-Yield 6% Dividend Stocks Have Big Total Return Potential

The post 5 Blue Chip Stocks to Buy Now That Pay Reliable 4%+ Dividends appeared first on 24/7 Wall St..

The Global X SuperDividend ETF (NYSEARCA:SDIV) generates its 8% yield by investing in 100 of the highest dividend-yielding equities across global markets. The fund holds stocks from developed and emerging markets spanning telecommunications, energy, materials, financials, and real estate. Income comes directly from dividends paid by underlying companies, making SDIV’s distributions entirely dependent on whether holdings can maintain their payouts.

With a 0.58% expense ratio and $1.1 billion in assets under management, SDIV offers broad diversification with no single holding exceeding 2% of the portfolio. However, this global approach introduces significant concentration in higher-risk markets and industries facing structural headwinds.

Evaluating Dividend Safety Across Top Holdings

SDIV’s yield sustainability depends heavily on its largest positions. Examining representative holdings reveals concerning patterns.

British American Tobacco is the biggest red flag here, with a 170% payout ratio, meaning they pay out more in dividends than they earn.. While the company maintains a 42% operating margin, revenues declined 2.2% year-over-year and earnings growth sits at just 1.6%. The secular decline in traditional tobacco creates structural pressure on maintaining current distributions.

AT&T demonstrates genuine dividend safety. Following its 2022 restructuring, the telecom maintains a conservative 36% payout ratio with 26.3% earnings growth and a 19.1% return on equity. The dividend appears secure and sustainable.

Rio Tinto and AbbVie fall in the middle, with manageable payout ratios near 60%, though both face industry-specific challenges including commodity exposure and patent cliffs respectively.

The Bottom Line on SDIV’s Yield

SDIV’s 8% yield comes with meaningful dividend cut risk. Two analyzed holdings pay out more than they earn, while the ETF’s 93% portfolio turnover suggests frequent rebalancing as companies reduce distributions. The fund’s global approach, including holdings in international companies like Vale and British American Tobacco, introduces currency and geopolitical risk.

For comparison, the Invesco S&P 500 High Dividend Low Volatility ETF (NYSEARCA:SPHD) offers an alternative approach to high-yield investing. SPHD targets the 50 highest-yielding, lowest-volatility stocks in the S&P 500, currently yielding 4.3%. By focusing exclusively on established U.S. large-caps with demonstrated dividend stability and lower volatility profiles, SPHD offers more conservative income generation. The tradeoff is a lower yield, but with significantly reduced risk of distribution cuts.

The post At A 8% Yield, Global X SuperDividend SDIV) Is One Of The Most Impressive High Income ETFs Today appeared first on 24/7 Wall St..

Google parent Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) is often seen as a core tech giant focused on search, advertising, and cloud computing. Yet beneath its main operations lies a quieter side: a venture arm that invests in promising companies in areas like space tech, geospatial data, and semiconductors. These bets target innovations adjacent to Alphabet’s ecosystem, such as enhanced connectivity for Android devices, Earth observation for AI-driven mapping in Google Earth, and efficient chip designs for data centers powering Google Cloud. 

Through GV (formerly Google Ventures) and CapitalG, Alphabet manages a portfolio of about 37 public stocks valued at $2.5 billion to $3 billion as of late 2025. The three largest positions — AST SpaceMobile (NASDAQ:ASTS), Planet Labs (NYSE:PL), and Arm Holdings (NASDAQ:ARM) — highlight its strategy of backing high-growth plays in satellite networks, imaging analytics, and artificial intelligence (AI) hardware. 

AST SpaceMobile (ASTS)

AST SpaceMobile tops Alphabet’s portfolio with a stake worth approximately $459 million at current prices, representing 18% of its equity holdings. The company aims to build a satellite-based cellular network that connects unmodified smartphones directly from space, eliminating dead zones in remote areas. 

Alphabet’s interest stems from synergies with Android, with plans to enable seamless SpaceMobile connectivity on billions of devices worldwide. This aligns with Alphabet’s push for ubiquitous access to its services, like Maps and YouTube, in underserved markets. 

The $155 million investment in early 2024, followed by an additional $203 million in shares during this year’s first quarter, underscores confidence in ASTS’s partnerships with carriers like AT&T (NYSE:T) and Vodafone (NASDAQ:VOD), which serve over 2.5 billion subscribers. Growth prospects look explosive. AST plans nationwide U.S. intermittent service by late 2025, expanding to Canada, Japan, and the U.K. in early 2026. Analysts forecast explosive revenue growth over the next few years, fueled by these deals. With a $1.2 billion cash buffer and a recent $420 million loan, funding for satellite launches is secure. 

The stock is up 143% year-to-date, despite losing half its value in the past month after missing Wall Street’s Q3 estimates last week. Trading around $52 per share, AST carries risks like execution delays in orbital deployments. For risk-tolerant investors, AST SpaceMobile offers moonshot potential — 50% upside by 2026 according to some models — if it captures even a slice of the $100 billion satellite broadband market. Alphabet’s bet signals it’s worth considering for those eyeing telecom disruption.

Planet Labs (PL)

Planet Labs holds the second spot in Alphabet’s portfolio at $356 million, or about 17% of holdings. Founded by NASA scientists, the company operates a fleet of over 200 satellites capturing daily global imagery, delivering geospatial data for agriculture, finance, defense, and climate monitoring. 

Alphabet invests here to bolster Google Earth and AI tools: Planet’s archives power environmental analytics, like deforestation tracking, and integrate with Google’s Earth AI models for pixel-level predictions on risks such as cholera outbreaks or hurricanes. This enhances Alphabet’s cloud services for enterprise clients needing real-time Earth intelligence.

The growth case is compelling despite current unprofitability. Shares have surged 176% in 2025, trading near $11, but are down 33% from the highs hit last month. Fiscal Q2 backlog exploded 245% year-over-year to $736 million — 2.6 times fiscal 2026 revenue guidance — signaling locked-in demand. Analysts project 20% topline growth through 2027, driven by AI-enhanced subscriptions and government contracts. 

Partnerships with Airbus and the World Health Organization add credibility. At a 13.1 price-to-sales ratio, valuation feels stretched amid $22.6 million Q2 losses, but improving margins from fleet efficiencies could flip to profits by 2027. Wall Street’s “Buy” consensus targeting $14.55 per share implies 30% upside, but aggressive investors may buy for the 18% annual revenue growth forecast, outpacing the aerospace sector. 

Alphabet sees untapped value in data monetization, making PL a solid pick for thematic exposure to geospatial AI. 

Arm Holdings (ARM)

Arm Holdings rounds out Alphabet’s top trio with a stake valued at around $258 million, roughly 11.5% of the portfolio. As a designer of energy-efficient CPU architectures, Arm licenses blueprints used in 99% of smartphones and increasingly in data centers. Alphabet’s investment ties directly to Google Cloud: Arm’s designs underpin custom chips like the Axion processor, offering 60% better performance-per-watt than Intel (NASDAQ:INTC) or Advanced Micro Devices (NASDAQ:AMD) rivals, slashing costs for AI workloads. This supports Alphabet’s hyperscale needs, where Arm expects 50% data center CPU share by the end of 2025.

Fiscal Q2 2026 revenue topped $1 billion (up 34% year-over-year), with royalties jumping 21% on Armv9 adoption. Q3 guidance calls for 25% revenue growth to $1.17 billion to $1.28 billion, fueled by smartphones, autos, and cloud. Analysts forecast 21% long-term earnings growth, pushing shares from $131 to a $168 target — 28% upside. 

The stock is up just 6% year-to-date after getting cut 28% during the market’s recent slide, but trades at a lofty 167 P/E. Still, partnerships with Qualcomm (NASDAQ:QCOM) and SoftBank, plus Compute Subsystems royalties, position Arm for dominance in edge AI. 

Investors chasing semiconductors could buy, as Alphabet’s stake validates its role in the $500 billion chip market, but a decision to make its own AI chips introduces much more risk. 

The post These Are the 3 Biggest Stocks in Alphabet’s Secret Portfolio appeared first on 24/7 Wall St..

AT&T (NYSE: T) and Verizon (NYSE: VZ) both reported Q3 earnings in late October, revealing two telecom giants moving in sharply different directions. AT&T leaned into its fiber-wireless convergence bet while Verizon signaled an urgent need for transformation.

Fiber Fuels AT&T While Verizon Faces Revenue Pressure

AT&T posted $30.70 billion in revenue, missing estimates by $190 million but growing 1.6% year over year. Consumer fiber broadband jumped 16.8% to $2.2 billion. Management highlighted that 41% of AT&T Fiber households now also subscribe to AT&T Mobility, validating CEO John Stankey’s convergence strategy of “winning the race to lead in convergence.” Mobility service revenue climbed 2.3% to $16.9 billion.

Verizon missed revenue estimates by a far wider margin, reporting $33.82 billion against a $35.31 billion consensus—a $1.49 billion shortfall. Wireless service revenue grew just 2.1% to $21.0 billion, while equipment revenue rose 5.2% to $5.6 billion on device upgrade cycles. Net income surged 48% to $5.06 billion, reflecting margin expansion rather than top-line momentum.

One Invests While the Other Restructures

AT&T spent $23 billion to acquire low-band and mid-band spectrum from EchoStar, signaling continued investment in network capacity. The company repurchased $1.5 billion in shares during Q3, bringing year-to-date buybacks to $2.4 billion. Free cash flow reached $4.9 billion, up from $4.6 billion the prior year. Management reiterated guidance for 3% or better mobility service revenue growth and mid-to-high-teens fiber broadband expansion.

Verizon took a different path. CEO Dan Schulman described the company as standing at “a critical inflection point” and promised to “aggressively transform our culture, our cost structure, and the financial profile.” Three weeks after earnings, Verizon announced plans to eliminate 15,000 jobs—15% of its workforce and the largest layoff in company history. The company will also convert 200 stores to franchises. A Reddit post in r/stocks capturing the news drew 1,375 upvotes and 183 comments.

What Comes Next for Both Businesses

AT&T needs to prove fiber growth can sustain mid-teens gains as penetration increases. The convergence strategy looks promising at 41% attachment, but maintaining momentum requires consistent execution.

Verizon faces a more urgent test. The 15,000 job cuts must deliver cost savings without damaging service quality in a business where customer experience drives retention. Management guided for just 2.0% to 2.8% wireless service revenue growth, well below AT&T’s 3%+ target.

Comparing Strategic Positions

AT&T’s fiber-wireless convergence strategy is showing measurable results, with 16.8% broadband growth and 41% household attachment rates. The company returned $2.4 billion to shareholders while investing $23 billion in strategic spectrum. Management reiterated guidance for 3% or better mobility service revenue growth and mid-to-high-teens fiber broadband expansion.

Verizon is pursuing a different approach focused on transformation. The company’s 15,000 job cuts and cultural overhaul represent a significant restructuring effort. Management guided for 2.0% to 2.8% wireless service revenue growth. Verizon’s 6.56% dividend yield reflects the company’s continued commitment to shareholder returns, having raised its dividend for the 19th consecutive year.

The post AT&T Bets on Fiber Growth While Verizon Cuts 15% of Workforce appeared first on 24/7 Wall St..

Technology investors are rotating into dividend stocks as a response to several growing market pressures. After years of chasing high-growth tech companies in a zero-interest-rate environment, many investors are now seeking more stable, income-generating assets amid economic uncertainty and falling interest rates. The spectacular run-up in tech valuations, particularly in AI-related stocks, has left many investors concerned about stretched valuations and the sustainability of growth narratives, prompting a defensive shift toward companies that can demonstrate profitability and return cash to shareholders. Especially since, according to Bloomberg, the Magnificent 7 are spending less on buybacks and more on capital expenditures.

Bloomberg also noted this in their article:

For most of the past three years, Big Tech had something to offer no matter the market environment: soaring profits in boom times, rock-solid balance sheets in times of stress. But that latter profile has taken a hit in recent weeks, as the likes of Oracle Corp. (NASDAQ: ORCL), Amazon.com Inc. (NASDAQ: AMZN),  and Meta Platforms Inc. (NASDAQ: META) tap the credit market for billions to fund artificial intelligence projects. The result is the first sustained selloff for the group since April, with the Nasdaq 100 leading the broader market lower as investors ditch tech winners in favor of more defensive stocks. One of the beneficiaries: companies with juicy dividend payments. That group, which includes old-economy stalwarts, is often coveted when riskier stocks start to look expensive. They also tend to be calmer in times of turbulence. The Cboe Volatility Index jumped above 24 on Tuesday (11/18), surpassing its long-term average of 19.

Blue-chip stocks are shares of large, well-established, financially stable companies with a consistent and reliable performance history. They are often considered less risky and are a popular choice for long-term investors. Additionally, nearly all leaders in the category pay dependable, recurring dividends each quarter, regardless of the state of the economy. The term “blue chip” originated in poker, where the highest-value chip is blue. We screened our 24/7 Wall St. blue-chip dividend stock database, and six top stocks remain outstanding ideas, all rated Buy on Wall Street.

Why do we cover blue-chip dividend stocks?

Investors love dividend stocks, especially the blue-chip variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.

AT&T

The world’s fourth-largest telecommunications company, measured by revenue, has been undergoing a lengthy restructuring while lowering its dividend, which still stands at a rich 4.34%. Eighteen analysts have given AT&T Inc. (NYSE: T) stock a Buy rating, indicating comprehensive Wall Street support. The company provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services.

It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

UBS has a Buy rating with a $31 target price.

Bristol-Myers Squibb

Bristol Myers Squibb Co. (NYSE: BMY) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines for patients with serious diseases across oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas. This remains a solid pharmaceutical stock to own in the long term, offering an attractive entry point with a reliable dividend yield of 5.10%.

The company beat third-quarter earnings and revenue estimates, reporting $1.63 per share in adjusted earnings and $12.2 billion in revenue. The strong performance was driven by an 18% year-over-year increase in its growth portfolio, which includes drugs such as Opdivo, Reblozyl, Breyanzi, and Camzyos, and by a 25% increase in Eliquis sales. The company also raised its full-year 2025 sales outlook.

Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.

Small-molecule drugs are typically administered orally in tablet or capsule form, although other drug-delivery mechanisms are also used. Biologics are usually administered by injection or intravenous infusion. CAR-T cell therapies are administered by intravenous infusion.

Its growth portfolio includes:

• Opdivo
• Opdivo Qvantig
• Orencia
• Yervoy
• Reblozyl
• Opdualag

Bristol-Myers Squibb’s legacy portfolio includes:

• Eliquis
• Revlimid
• Pomalyst/Imnovid
• Sprycel
• Abraxane

Jefferies has a Buy rating with a $68 target price.

Chevron

This American multinational energy company predominantly specializes in oil and gas. Chevron Corp. (NYSE: CVX) is a safer option for investors looking to position themselves in the energy sector, paying a substantial 4.42% dividend, which was raised by 5% earlier this year. It operates integrated energy and chemicals businesses worldwide and offers investors excellent credit ratings (AA), diversified operations, strong margins, and a long history of paying and raising dividends yearly.

The company operates in two segments. The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in late 2023 that it had entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal in October; it closed in July, providing a solid boost to Chevron’s third-quarter earnings, which exceeded analysts’ expectations. The company reported earnings of $1.85 per share, which exceeded the consensus estimate of $1.73, and revenue of $49.73 billion, surpassing the forecast of $49.50 billion.

UBS has a Buy rating with a huge $197 target price.

Coca-Cola

Coca-Cola Co. (NYSE: KO) is an American multinational corporation founded in 1892. It remains a top long-time holding of Warren Buffett, who owns a massive 400 million shares. It pays a dependable 2.85% dividend and is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the company’s portfolio features 20 billion-dollar brands, including:

• Diet Coke
• Coca-Cola Light
• Coca-Cola Zero Sugar
• Caffeine-free Diet Coke
• Cherry Coke
• Fanta Orange
• Fanta Zero Orange
• Fanta Zero Sugar
• Fanta Apple
• Sprite
• Sprite Zero Sugar
• Simply Orange
• Simply Apple
• Simply Grapefruit
• Fresca
• Schweppes
• Dasani
• Fuze Tea
• Glacéau Smartwater
• Glacéau Vitaminwater
• Gold Peak
• Ice Dew
• Powerade
• Topo Chico
• Minute Maid

Globally, it is the top provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks.

Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage Corp. (NASDAQ: MNST), which continues to deliver big numbers.

Bank of America has a Buy rating with a $80 target price.

JPMorgan Chase

JPMorgan Chase & Co. (NYSE: JPM) is the fifth-largest bank in the world by assets. Its stock trades at a reasonable 12.5 times estimated 2026 earnings, with a 1.73% dividend yield. JPMorgan is one of the leading global financial services firms and one of the largest U.S. banks, with about $3.9 trillion in assets. The company was formed by merging Chase Manhattan’s retail banking operations with J.P. Morgan’s investment banking operations.

The company operates through four segments:

• Consumer & Community Banking (CCB)
• Corporate & Investment Bank (CIB)
• Commercial Banking (CB)
• Asset & Wealth Management (AWM)

The CCB segment offers:

• Deposit, investment, and lending products
• Cash management, payments, and services
• Mortgage origination and servicing activities
• Residential mortgages and home equity loans

Credit cards, auto loans, leases, and travel services are offered to consumers and small businesses through bank branches, ATMs, and digital and telephone banking.

The CIB segment provides:

• Investment banking products and services, including corporate strategy and structure advisory
• Equity and debt market capital-raising services
• Loan origination and syndication
• Payments
• Cash and derivative instruments
• Risk management solutions
• Prime brokerage
• Research

This segment also offers securities services, including custody, fund accounting and administration, and securities lending products for asset managers, insurance companies, and public and private investment funds.

The CB segment provides financial solutions, including lending, payments, investment banking, and asset management, to small and midsized companies, local governments, nonprofit clients, and large corporations, as well as investors, developers, and owners of multifamily, office, retail, industrial, and affordable housing properties.

The AWM segment offers multi-asset investment management solutions in equities, fixed income, alternatives, and money market funds to institutional clients and retail investors. It also provides brokerage, custody, estate planning, lending, deposits, and investment management products, as well as retirement products and services, to high-net-worth clients.

Wells Fargo has an Overweight rating with a monster $350 price target.

Procter & Gamble

Procter & Gamble Co. (NYSE: PG) was founded more than 185 years ago as a soap-and-candle company. It has paid dividends to shareholders since 1891, raised them for 69 straight years, and currently pays a 2.79% dividend. The company focuses on providing branded consumer packaged goods worldwide.

Its segments include:

• Beauty
• Grooming
• Health Care
• Fabric & Home Care
• Baby
• Feminine & Family Care

The company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores, high-frequency stores, pharmacies, electronics stores, and professional channels. It also sells directly to individual consumers. It has operations in approximately 70 countries.

Procter & Gamble offers products under such brands as:

• Head & Shoulders
• Herbal Essences
• Pantene
• Rejoice
• Olay
• Old Spice
• Safeguard
• Secret
• SK-II
• Braun
• Gillette
• Venus
• Crest
• Oral-B
• Ariel
• Downy
• Gain
• Tide
• Always
• Always Discreet
• Tampax
• Bounty

Raymond James has an Outperform rating with a $175 price objective.

Goldman Sachs Adds Two Stocks to November Conviction List That Offer Dividends and Growth

The post The Tech Rotation Is On and Dividend-Paying Blue-Chips Are the Winners appeared first on 24/7 Wall St..

Certain dividend stocks are worth holding no matter what your portfolio looks like. Dividend stocks like Fortis (NYSE:FTS), Verizon (NYSE:VZ), and Atmos Energy (NYSE:ATO), have stood the test of time and do well as long-term strategic plays. Plus, they can act as stabilizers for your entire portfolio if the market starts getting more volatile.

The current environment is perfect for looking at these dividend stocks. Murmurs on Wall Street suggest that the rally may be plateauing. I wouldn’t blame you for dismissing that, as those assertions have been proven wrong over and over again since 2022. However, the fundamentals are weakening this time around, with hyperscalers and big-cap companies beginning to run short on the cash needed to fund their AI build-out commitments. If the AI train stops, the rest of the market is sure to get thrown around.

Dividend stocks are one of the best ways to prepare for the pendulum swinging back.

Fortis (FTS)

Fortis is a regulated electric and gas utility company based in Canada. Operating revenue is diversified across North America, with 54.8% of 2024 revenue coming from the U.S., 35.4% coming from Canada, and from various other nations, mostly in the Caribbean.

Fortis has historically been very stable, with occasional lapses that have aligned with market crisis periods. But in the current climate, FTS stock looks particularly strong due to what it does.

Electric and gas utilities are in a wonderful position, as they are mostly outside the domain of international tariffs. These companies can see equipment costs rise, but that’s imperceptible compared to companies that engage in international trade directly.

Moreover, the current export boom from North America to Europe and the AI build-out are increasing demand for natural gas pipelines and electrical infrastructure.

Fortis has managed to continually increase its cash flow over the coming years. Dividend payouts have increased in parallel. Operating cash flow has doubled from $1.4 billion in 2016 to $2.8 billion as of Q3 2025 (TTM). At the same time, cash flow for dividends has increased from $291 million in 2016 to $612 million.

The forward dividend yield is 3.49% with a forward payout ratio of 71.35%. There’s plenty more room for dividend growth.

Verizon (VZ)

Verizon is no longer the debt-laden telecommunications laggard it was just two years ago. The company has been going through a makeover in the eyes of Wall Street as it successfully weathered harsh interest rate hikes and grew dividends simultaneously.

Now, Verizon’s products seem to be in high demand as consumers see the internet as essential, with the data center build-out driving demand for Verizon’s extensive infrastructure.

The company posted 306,000 broadband net additions in Q3 2025. Fixed wireless access net additions were 261,000, with 61,000 Fios internet net additions. In total, broadband connections grew 11.1% year-over-year.

The company raised its dividends for the 19th consecutive year, and the future looks solid, especially with interest rate cuts reducing the company’s $170.45 billion debt burden.

Again, this debt may look frightful, but Verizon posted $17.5 billion in net income despite posting a $6.3 billion net interest loss.

I see the stock having an established floor near the $30-40 range, with solid upside potential ahead beyond $60 if it makes a recovery like AT&T (NYSE:T).

The forward dividend yield is 6.72%. The dividend payout ratio is just 57.68% despite that juicy yield.

Atmos Energy (ATO)

Atmos Energy is one of the largest natural-gas-only distributors in the U.S. The company operates exclusively in the natural gas sector.

Atmos Energy’s operations are divided into two main segments. The first is natural gas distribution, with the second being pipeline and storage services. Natural gas distribution generated $3.9 billion in operating revenue, with the Pipeline and Storage segment generating $938 million.

3-year free cash flow growth is at 30.5% annually, with future revenue growth in the coming years expected to be 11.5% annually.

The company’s reliability isn’t a new development. ATO stock hasn’t had a sharp crash in recent history. Even the losses in 2020 were quickly recouped, with the 2008 drawdowns being much less severe than the broader market.

ATO has a 2.28% forward dividend yield with 40 consecutive years of dividend growth. The forward payout ratio is 46.46%.

The post These 3 Dividend Stocks Are Perfect for Any Portfolio appeared first on 24/7 Wall St..

Goldman Sachs has projected that U.S. stocks will deliver lackluster returns over the next decade primarily due to two key factors: extreme market concentration and elevated valuations. The firm forecasts an annualized nominal total return of just 3% for the S&P 500 over the next decade, which would place it in the 7th percentile of 10-year returns since 1930.

The U.S. equity market is currently near its highest level of concentration in 100 years, with recent gains dominated by the Magnificent 7, a small group of mega-cap technology stocks. Goldman Sachs argues that maintaining the exceptional growth rates and profit margins that have driven these market leaders is historically challenging over extended periods, making it unlikely that the concentrated rally can continue at its recent pace.

In addition, the firm’s model predicts a 72% probability that stocks will underperform bonds over the next decade, according to Wealth Professional, a stark contrast to the 13% annualized returns investors have enjoyed over the past decade. After three years of double-digit returns for investors, it’s likely time to re-allocate portfolios.

Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it produces some of Wall Street’s most coveted research and serves as a bellwether for the financial industry.

We screened the company’s top stocks for dividend-paying value companies that conservative growth and income investors should consider moving to in what could be a volatile 2026, which will include the mid-term elections, which could change the complexion of Congress next year.

Why we recommend Goldman Sachs stocks

Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years to come.

Abbott Laboratories

This healthcare giant presents an excellent investment opportunity with a dividend yield of 1.87%. Abbott Laboratories Inc. (NYSE: ABT) is engaged in the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products.

The company operates through four segments:

• Established Pharmaceutical Products
• Diagnostic Products
• Nutritional Products
• Medical Devices

The Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products.

The Diagnostic Products segment is engaged in the worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories, and alternate-care testing sites.

The Nutritional Products segment is involved in the worldwide sales of a broad line of adult and pediatric nutritional products.

The Medical Devices segment includes the worldwide sales of:

• Rhythm management
• Electrophysiology
• Heart failure
• Vascular
• Structural heart
• Neuromodulation
• Diabetes care products

Goldman Sachs has a $157 target price, representing a 17% gain.

Altria

Altria Group Inc. (NYSE: MO) is one of the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a compelling entry point and a generous dividend yield of 7.20%. Altria manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company’s dividend payout is based on free cash flow, ranging from about 64% to 80% per quarter. In recent quarters, free cash flow has exceeded dividend payments, providing a solid buffer. Altria generates strong cash flow from its core tobacco business, which provides a stable base, albeit with regulatory risk, and yields are among the highest in the S&P 500, at least for now.

The company primarily sells cigarettes under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches
• e-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Goldman Sachs’ price target is $73.

AT&T

AT&T Inc. (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecommunications company has been undergoing a lengthy restructuring process, during which it has reduced its dividend to 4.47%. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support. AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

Goldman Sachs has a price target of $33 for the stock.

Hershey

With the holidays just around the corner, this is an excellent opportunity for growth and income investors, offering a dependable 3.24% dividend yield. Hershey Co. (NYSE: HSY) is a snacks company operating via these segments:

• North America Confectionery
• North America Salty Snacks
• International

The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada.

This includes its business in:

• Chocolate and non-chocolate confectionery
• Gum and refreshment products
• Protein bars
• Spreads
• Snack bites and mixes
• Pantry and food service lines

This segment also includes its retail operations.

The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans-fat-free snacks, pretzels, and other similar snacks.

The company’s portfolio includes chocolate and confectionery brands such as:

• Hershey’s
• Reese’s
• Kisses
• Kit Kat
• Jolly Rancher
• Ice Breakers
• Shaq-a-licious alongside salty snacks
• SkinnyPop
• Dot’s Homestyle Pretzels

The Goldman Sachs target price for the stock is $222, representing a 19% gain for investors.

Valero

This is one of the safest ways for investors to play the energy sector as refining capacity has shrunk, and supply has increased. Valero Energy Corp. (NYSE: VLO) is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels, as well as petrochemical products.

The company owns over 15 petroleum refineries located in the United States, Canada, and the United Kingdom. It sells its products primarily in:

• United States
• Canada
• United Kingdom
• Ireland
• Latin America

Valero operates through three segments. The Refining segment encompasses the operations of its petroleum refineries, the associated activities involved in marketing its refined petroleum products, and the logistics assets that support these operations.

The Renewable Diesel segment encompasses the operations of Diamond Green Diesel (DGD) and its associated activities, including marketing renewable diesel and renewable naphtha.

The Ethanol segment includes the operations of its ethanol plants and the associated activities involved in marketing its ethanol and co-products.

Goldman Sachs has a target price of $197.

Retiring Soon? Five Safe Monthly Pay ETFs Are All You Need

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All the major Wall Street firms we cover here at 24/7 Wall St. have a list of the top stock picks for their institutional and retail clients to invest in. Typically, these are companies that analysts have a high level of conviction in and feel strongly about their fundamentals and forward-looking prospects. In addition, they often have good upside to the assigned price target and are bestowed with either a Buy or Overweight rating, depending on the company providing the coverage.

After a furious summer rally from the April lows, and with all the major indices still trading near all-time highs, many investors are treading carefully as the end of 2025 approaches, following a very rocky week that saw AI bubble worries add significant volatility to the mix. Given the growing concern, we were very interested in seeing which dividend stocks were featured in the November edition of J.P. Morgan’s Analyst Focus List.

The research team at J.P. Morgan updates its U.S. Analyst Focus List stock every month, as described by the company:

The U.S. Analyst Focus List is updated monthly. Names may be removed mid-month when a valuation target has been largely or wholly achieved or the original rationale is no longer valid. New ideas can also be added mid-month. Analysts will publish the explanation for all mid-month changes in a research note.

We screened the November Analyst Focus List looking for J.P. Morgan’s safe top dividend stock picks, and five of our favorite companies made the list. This all makes sense for growth and income investors looking for the top ideas from the best Wall Street firms.

Why do we recommend J.P. Morgan’s Analyst Focus List stocks?

JPMorgan is one of the acknowledged leaders in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come.

AT&T

AT&T Inc. (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecommunications company has been undergoing a lengthy restructuring process while maintaining a solid dividend of 4.49%. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support. AT&T  provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• SecuT
• Cloud solutions
• Outsourcing
• Managed and provided professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

Additionally, this segment provides residential customers with broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under these brands:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.

J.P. Morgan has a price target of $33 for the stock.

Best Buy

Concerns over tariffs and other issues have affected the retailing giant. Still, with a substantial 4.80% dividend and trading at a favorable entry point for new investors, this presents a potential total return home run. Best Buy Co. Inc. (NYSE: BBY) operates in two segments.

The Domestic segment comprises its operations in all states, districts, and territories of the United States and its Best Buy Health business, and includes the brand names:

• Best Buy
• Best Buy Ads
• Best Buy Business
• Best Buy Essentials
• Best Buy Health
• Current Health
• Geek Squad
• Imagine That
• Insignia
• Lively
• My Best Buy
• My Best Buy Memberships
• Pacific Kitchen and Home
• Tech Liquidators
• Yardbird

The company’s domain names are bestbuy.com, currenthealth.com, lively.com, techliquidators.com, and yardbird.com.

The International segment comprises all operations in Canada under the brand names Best Buy, Best Buy Express, Best Buy Mobile, Geek Squad, and TechLiquidators, as well as the domain names bestbuy.ca and techliquidators.ca.

Best Buy’s product categories include computing and mobile phones, consumer electronics, appliances, entertainment, services, and others.

J.P. Morgan has a $89 price target for the stock.

Broadstone Net Lease

With a substantial 6.52% dividend yield and a robust portfolio, this real estate investment trust (REIT) is a compelling investment option, especially given the expectation that interest rates will remain low. Broadstone Net Lease Inc. (NYSE: BNL) is an industrial-focused, diversified net lease REIT. It invests primarily in single-tenant commercial real estate properties that are net leased on a long-term basis to a diversified group of tenants. It is mainly diversified across industrial and retail property types.

Under the industrial property type, it includes:

• Manufacturing
• Distribution and warehouse
• Food processing
• Flex
• Research and development
• Cold storage
• Services

Under the retail property type, it includes:

• General merchandise
• Casual dining
• Quick-service restaurants
• Automotive,
• Animal services,
• Home furnishings
• Healthcare services
• Education

And Under Other property type, it includes offices and clinical/surgical facilities.

The company’s portfolio comprises approximately 766 properties, with 759 properties located in 44 U.S. states and seven properties situated in four Canadian provinces.

The J.P. Morgan price target is $21.

Entergy

This energy company is engaged primarily in electric power production and retail distribution operations in the Deep South of the United States. A top utility stock, Entergy Corp. (NYSE: ETR) always makes sense for conservative investors, and it comes a dependable 2.52% dividend.

Its Utility segment generates, transmits, distributes, and sells electric power in:

• Arkansas
• Louisiana
• Mississippi
• Texas
• City of New Orleans

The company also distributes natural gas.

The Entergy Wholesale Commodities segment is involved in:

• The ownership, operation, and decommissioning of nuclear power plants located in the northern United States
• Sale of electric power to wholesale customers
• Provision of services to other nuclear power plant owners
• Ownership of interests in non-nuclear power plants that sell electric power to wholesale customers

The company generates electricity from various sources, including gas, nuclear, coal, hydro, and solar. It sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. It delivers electricity to 3 million utility customers, with power plants that have approximately 24,000 megawatts (MW) of electric generating capacity, including 5,000 MW of nuclear power.

The J.P. Morgan price target for the shares is $103.

EQT

This top company is one of the largest natural gas producers in the United States, particularly in the Appalachian Basin. It is recognized for being a low-cost producer with a dividend yield of 1.13%. EQT Corp. (NYSE: EQT) is a premier, vertically integrated company with production and midstream operations. It has operations in Pennsylvania, West Virginia, and Ohio.

Its strategic position in the Southeast, especially near data center hubs like northern Virginia, makes it a key supplier for AI-driven energy needs. EQT has secured agreements to supply natural gas to major data center campuses, such as the redevelopment of a former coal plant in Homer City, Pennsylvania, into a natural gas-powered data center.

EQT owns or leases approximately 610,000 net acres in Pennsylvania. Most of the acreage is located in the southwestern region of the state, with the majority located in Greene and Washington Counties. The company is developing the Marcellus Shale and Upper Devonian Shale in this area. It also owns or leases 405,000 net acres in West Virginia. Most of the acreage is located in the northwestern region of the state, with the majority located in Doddridge, Marion, Tyler, and Wetzel Counties.

It owns or leases 65,000 net acres in eastern Ohio and is developing the Utica Shale in Belmont County. It operates Utica wells throughout its Ohio acreage. The Marcellus Shale lies nearly a mile or more beneath the surface throughout much of Ohio, Pennsylvania, New York, and West Virginia.

J.P. Morgan has a target price of $62.

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S&P 500 futures are on the run as Advanced Micro Devices (NASDAQ: AMD) leads the tech pivot higher. Last checked, the S&P 500 is up about 24 points. The SPDR S&P 500 ETF (SPY) is up about $2.35. Dow futures are up 105, with the tech-heavy Nasdaq up about 152.

Again, that’s thanks to AMD, which is up about $14, or 6% in premarket.

All after CEO Lisa Su said AMD could achieve “double-digit” share of the data center AI market over the next three to five years. Right now, that market is dominated by Nvidia, which holds about 90% of that market.

Fueling momentum, Wells Fargo just hiked its AMD price target to $345 with an overweight rating. That’s thanks to AMD gaining market share and the CEO’s prediction for compound annual revenue growth of about 35%, as well as insatiable demand for AI chips.

In addition, she said AMD’s data center business is expected to grow at around 80% per year, and is on track to hit billions of dollars of sales by 2027. By 2030, AMD expects AMD data center revenue to hit $1 trillion per year.

Nvidia is also on the run 

After pulling back, Nvidia (NASDAQ: NVDA) is regaining momentum ahead of earnings.

This morning, TD Cowen reiterated its buy rating on the tech giant on the likely strength of the Blackwell Ultra uplift. Plus, Citi reiterated a buy rating on the stock, with a price target of $220 from $210. The firm expects NVDA to post sales of $56.8 billion, as compared to analyst expectations for $54.6 billion.