Retirement Stock Portfolio: 5 Safe Dividend Stocks to Consider

In this article, we discuss the 5 safe dividend stocks for a retirement stock portfolio. If you want to read about some more dividend stocks, go directly to Retirement Stock Portfolio: 11 Safe Dividend Stocks to Consider.

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

Number of Hedge Fund Holders: 61  

Dividend Yield as of November 28: 5.81%     

AT&T Inc. (NYSE:T) provides telecommunications, media, and technical services worldwide. 

On October 24, Raymond James analyst Frank Louthan upgraded AT&T Inc. (NYSE:T) stock to Strong Buy from Outperform with an unchanged price target of $24, highlighting that the company will outpace Verizon over the next few months based on the current operating performance of the two businesses.  

At the end of the third quarter of 2022, 61 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in AT&T Inc. (NYSE:T), compared to 55 in the preceding quarter worth $1.7 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 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 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.”