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Want $1500 in Safe and Dependable Passive Income? Invest This Much in AT&T.
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24/7 Wall St. Insights
Passive income is a financial strategy known for generating revenue without the need for the earner’s continuous active effort. This makes it an attractive option for those looking to diversify their income streams or achieve financial independence.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade or business in which the individual does not materially participate. It can also include income from limited partnerships and other similar enterprises where the individual is not actively involved.
Those looking to buy solid, safe dividend stocks may consider telecom giant AT&T. The stock looks like a great idea now as a solid passive income-generating machine. The shares have traded sideways since the fall of 2021 and look ready to break out to new 52-week highs. Dividend investors can also grab this free report.
The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 5.72%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
AT&T also provides:
In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under :
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.
Investors looking to generate $1,500 per year in passive income by owning AT&T shares, which pay $1.11 per share each year, would have to buy 1350 shares of the stock at current trading prices. That would be approximately a $26,190 purchase, and as mentioned, with the stock looking to break out to a 52-week high, there could be some excellent upside potential.
The company added almost 50,000 broadband subscribers in the second quarter as it continued to take business away from the cable companies. While AT&T will not become the broadband champion anytime soon, as the cable companies maintain an attractive advantage, the solid growth bodes well for investors buying shares now.
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