Dividends Change the Game for AT&T Inc. (T) Shareholders

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The telecom market is in a state of upheaval right now. The two-player dominance of AT&T Inc. (NYSE:T) and Verizon is being challenged as smaller players combine to pose a new threat. Sprint Nextel Corporation (NYSE:S) recently landed a massive cash investment from Japanese network Softbank, and it also picked up data networking specialist Clearwire. TMOBILE US INC (NYSE:TMUS) merged with prepaid expert MetroPCS and is using Metro’s network assets to improve its own high-speed services. Combined, T-Mobile and Sprint nearly add up to a third 100-million subscriber Rolodex in the same class as Verizon and AT&T.

Even so, none of the rising challengers can match the wealth and infrastructure of the big two. It’s also safe to assume that AT&T Inc. (NYSE:T) will fight hard to stay relevant, no matter what new innovation the smaller players might bring to the table. In other words, Ma Bell remains a safe bet for the long run, even as the wireless industry evolves. Expect this dividend to lead the Dow for many years to come.

The article How Dividends Change the Game for AT&T Shareholders originally appeared on Fool.com.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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