Tune in for a fireside chat with CEO John Stankey at the UBS Conference on Tuesday, Dec. 5, scheduled to begin at 8:15 a.m. ET.
The main reason is that dividend stocks with yields below the average of the S&P 500 index, which stands at 1.62% at present, frequently deliver above-average returns on capital on a multiyear basis. Alternatively, stocks with yields above the S&P 500 average can serve as powerful hedges against market volatility, and provide healthy levels of income over time. Like any investment, though, you should have a clear idea about how a dividend stock fits into your broader strategy and overall portfolio before buying shares.
AT&T is one of the largest wireless carriers in the U.S. and its stock sports a ginormous 6.84% yield at current levels. Altria, on the other hand, is a top U.S. tobacco company, and its shares offer a tantalizing 9.45% yield right now. With this background in mind, let's dig deeper to find out which of these ultra-high-yield dividend stocks is the better buy.