5 Best Fortune 500 Dividend Stocks to Buy Now

In this article, we discuss 5 best Fortune 500 dividend stocks to buy now. If you want to read about some more Fortune 500 dividend stocks, go directly to 12 Best Fortune 500 Dividend Stocks to Buy Now.

5. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 55  

Dividend Yield as of October 18: 7.25%

AT&T Inc. (NYSE:T) provides telecommunications, media, and technology services worldwide. It is one of the best large cap stocks to invest in. On October 10, the chief technology officer of AT&T said that the firm is converging wired and wireless tech in municipalities across the country and it is also in the process of deploying its 5G standalone core.

On August 18, MoffettNathanson analyst Craig Moffett maintained a Market Perform rating on AT&T Inc. (NYSE:T) stock and lowered the firm’s price target to $17 from $19, noting that the company has accelerated its subscriber growth in the past few months. 

At the end of the second quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in AT&T Inc. (NYSE:T), compared to 74 in the preceding quarter worth $4 billion. 

In its Q2 2022 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and AT&T Inc. (NYSE:T) was one of them. Here is what the fund said:

“I purchased shares of AT&T Inc. (NYSE:T) prior to its spin-off of Warner Brothers Discovery (WBD). Most people are probably familiar with AT&T. They are a major cellular service provider, and until recently owner of the Time Warner media assets, which include HBO, CNN, TNT, TBS, Cartoon Network, DC Comics and the Batman content brands, and more. At the time of my purchase, I estimated that the combined T/WBD assets traded at a 15% levered FCF yield, or 6x FCF. I also believe that WBD, which now has HBO Max, has future growth in front of it which was previously in doubt when Discovery was primarily tied to the declining cable television bundle. Since then, Netflix reported disappointing subscriber growth, which threw all streaming companies into disarray. WBD followed that news with a disappointing outlook on its business during its own quarterly earnings.

As a result, shares of WBD have declined nearly 40% since the spin-off. WBD now trades for 7x 2023E FCF and there is great potential for returns over the next few years as WBD pays down debt used to finance its merger combining Warner Brothers and Discovery and grows. We do not own a large position in WBD at present, but we may add to it over time.”