AT&T Inc. (NYSE: T) is the best dividend payer of the major telecom and wireless carriers. It also now has closed on its long-pending DirecTV merger, a move that will bolster its dividend even further. The stock is valued at just 11.5 times expected 2016 earnings, which should offer more than ample dividend coverage for quite some time. Despite a four-way wireless price war, AT&T has U-verse, DirecTV, business and landline operations and other wireless and Web services. The big drag here is that investors hate price wars.
Shares were last seen at $32.20, versus a 52-week range of $30.97 to $36.45. The consensus analyst price target is $37.00. AT&T has a dividend yield of 5.8% and a market cap of $198 billion.
Chevron Corp. (NYSE: CVX) has been battered and bruised. Its 5.5% or so dividend yield is based solely on the massive correction in the stock — down almost 40% from its 52-week high. As it is in the energy patch and so dependent on a weak oil market, there is really nothing that we can say that will encourage or discourage new investors here. The one caveat is that its $4.28 annualized dividend exceeds this year’s expected earnings per share estimate of $3.30. The company has said it wants to maintain that dividend yield, and that verdict may just rely solely on the long-term price trends of oil.
Shares of Chevron recently were above $77.00. The consensus price target is $95.32, and the 52-week range is $69.58 to $123.07. Its market cap is nearly $143 billion.
Enterprise Products Partners L.P. (NYSE: EPD) has been battered along with the energy patch, but this is the king of master limited partnerships (MLPs) and it has been able to keep raising its distributions. Enterprise has pulled back about 40% from its highs and still is worth over $50 billion — and that 5.7% or so yield equivalent from the distribution keeps being called safe as it has continued to ratchet the payout higher. Analysts and institutions say that MLPs are largely immune, but the unit price drops and the industry pressure may be too large to avoid.
Shares of Enterprise Products were last seen at $25.40, below its consensus analyst price target of $37.50. The stock has 52-week trading range of $24.62 to $40.95.
Lamar Advertising Co. (NASDAQ: LAMR) is a company you might not think of as a household name, but if you drive on a freeway or a highway that has billboards for advertising then you almost certainly have seen one of its properties, there or on a bus ad or seat ad. It is now a real estate investment trust (REIT) but that is a relatively new development, with a value of 18 times projected earnings for 2016.
Lamar shares were recently trading at $53.05 in a 52-week range of $43.39 to $61.73. The consensus price target is $59.67. It has a dividend yield of 5.1% and a market cap of about $5 billion.