Top 5 High Dividend Stocks To Buy Now

2. AT&T Inc (T)

AT&T shares declined sharply this year but insiders are buying. The stock currently trades under $27 and offers an annualized dividend yield of 7.85%. Activist Elliott Management went activist against AT&T last year and reached a deal with the company. Here is what Elliott said a year ago about its agreement with T:

“We have closely evaluated the company’s three-year plan and support the steps toward a faster-growing, more profitable, focused and shareholder-friendly company. The combination of AT&T’s improving business performance, consistent and faster revenue growth, significant margin expansion and enhanced capital return will generate meaningful earnings and cash flow growth over the next three years. In addition, AT&T will continue to refresh its Board as it executes on its plan to realize the $4.50 – $4.80 of EPS by 2022, a figure that is readily achievable and one which excludes the benefit of any portfolio actions. Altogether, we are confident this will yield significant share price upside at AT&T.”

There were a total of 57 hedge funds with bullish AT&T positions at the end of June. We have yet to see AT&T make progress on earnings front, but hedge funds seem confident. If AT&T can indeed turn the business around and deliver $4.50 per share in earnings, its shares should more than double.