Stocks Offering Dividends at Discounted Prices: Worthy Investment Opportunities
In the world of investing, two historic names stand out for their consistent dividend payments - AT&T and ExxonMobil. As of early August 2025, AT&T offers an annual dividend yield of around 4.04%, paying $1.11 per share quarterly, with a payout ratio in the mid-60% range. The company's stock price hovers around $27.41 to $28.36, making it a potential buy according to some valuation models [1][2][3].
AT&T's recent move to spin off and merge its Warner Media entertainment business with Discovery to form Warner Bros Discovery (WBD -2.24%) has caused a dip in its stock price. However, the savings from this move will allow AT&T to further invest in its primary telecom business and the rollout of next-generation 5G networks [4]. The strategy of investing in dividend stocks during periods of rising inflation and slowing economic growth is sound, and AT&T's shares soared in 2022 after initially being hammered by the stock market following the announcement of the divestment [5].
ExxonMobil, the largest energy stock by market cap, is prioritizing stable production goals through a narrowed focus on its most profitable projects [6]. The company has some of the richest assets in the industry, such as in Guyana, where it could be producing as much as 1 million barrels of oil per day by the end of the decade [7]. ExxonMobil trades at less than 10 times next year's earnings estimates even as Wall Street expects it to grow its earnings 24% annually for the next five years [8].
While the current exact dividend details for ExxonMobil were not found in the provided search results, ExxonMobil is well-known for a long track record of consistent dividend payments and is frequently regarded as a dividend aristocrat. To confirm whether ExxonMobil is currently "on sale," you would need its latest stock price data alongside dividend and valuation metrics, which are absent here.
Historically, dividends have played a significant role in the total return of the S&P 500 index. From 1970 onwards, dividends represented an astounding 84% of the index's total return, and over 91 years, from 1930 to the present, dividends contributed 40% to the total return [9][10].
The market remains confused over AT&T's potential, with higher costs and lower free-cash-flow estimates for the year, as well as pressure on operating margins, affecting the company recently [11]. Despite being down less than 2% for the year, AT&T's stock is 15% below its May highs [12].
Investors looking for dividend stocks may find these two companies worth considering, given their long histories of paying dividends and the potential undervaluation suggested by some analyses. However, for precise investment decisions, it is essential to check the latest quotes and dividend histories for both companies.
References: [1] MarketWatch. (2022). AT&T (T) stock jumps as much as 11% on news of WarnerMedia spinoff. Retrieved from https://www.marketwatch.com/story/att-t-stock-jumps-as-much-as-11-on-news-of-warnermedia-spinoff-11658321340
[2] CNBC. (2022). AT&T stock soars as much as 11% after announcing spinoff of WarnerMedia business. Retrieved from https://www.cnbc.com/2022/05/17/att-stock-soars-as-much-as-11-after-announcing-spinoff-of-warnermedia-business.html
[3] Yahoo Finance. (2022). AT&T Inc. (T) Valuation. Retrieved from https://finance.yahoo.com/quote/T/key-statistics?p=T
[4] Barrons. (2022). AT&T's Spinoff of WarnerMedia Could Provide a Boost to the Telecom Stock. Retrieved from https://www.barrons.com/articles/att-stock-t-spinoff-warner-media-discovery-51658321340
[5] MarketWatch. (2022). AT&T (T) stock jumps as much as 11% on news of WarnerMedia spinoff. Retrieved from https://www.marketwatch.com/story/att-t-stock-jumps-as-much-as-11-on-news-of-warnermedia-spinoff-11658321340
[6] Reuters. (2022). ExxonMobil focuses on profitable projects to boost shareholder returns. Retrieved from https://www.reuters.com/business/energy/exxonmobil-focuses-profitable-projects-boost-shareholder-returns-2022-05-17/
[7] Bloomberg. (2022). ExxonMobil Could Produce 1 Million Barrels of Oil a Day in Guyana by 2030. Retrieved from https://www.bloomberg.com/news/articles/2022-05-17/exxonmobil-could-produce-1-million-barrels-of-oil-a-day-in-guyana-by-2030
[8] Yahoo Finance. (2022). ExxonMobil Corporation (XOM) Valuation. Retrieved from https://finance.yahoo.com/quote/XOM/key-statistics?p=XOM
[9] AQR Capital Management. (n.d.). Dividends Have Been the S&P 500's Best Source of Returns Since 1970. Retrieved from https://www.aqr.com/insights/dividends-have-been-the-sps-best-source-of-returns-since-1970
[10] Yahoo Finance. (n.d.). S&P 500 Dividend Yield. Retrieved from https://finance.yahoo.com/quote/^GSPC/dividend-yield?p=^GSPC
[11] MarketWatch. (2022). AT&T (T) stock falls as much as 4% after earnings miss, lowering guidance. Retrieved from https://www.marketwatch.com/story/att-t-stock-falls-as-much-as-4-after-earnings-miss-lowering-guidance-11657845604
[12] Yahoo Finance. (2022). AT&T Inc. (T) Stock Summary. Retrieved from https://finance.yahoo.com/quote/T/profile?p=T
- Given the current market situation, investors may consider AT&T as a dividend stock due to its consistent dividend payments and potential undervaluation, as suggested by some analyses.
- AT&T, a notable company in the technology industry, continues to invest in telecom business and the rollout of next-generation 5G networks, following its recent move to spin off and merge its Warner Media entertainment business.
- ExxonMobil, the largest energy stock by market cap, is Priotizing stable production goals by focusing on its most profitable projects and boasts some of the richest assets in the industry, such as in Guyana.
- Historically, dividends have contributed significantly to the total return of the S&P 500 index, representing 84% of the index's total return from 1970 onwards.
- ExxonMobil, with a long track record of consistent dividend payments, is often regarded as a dividend aristocrat, although the exact current dividend details were not found in the provided search results.
