This High-Yield Dividend Stock Has Nearly Tripled the S&P 500's Performance Over the Past Year. Should Investors Continue to Buy It?
This stock is known for being slow and stodgy but has been anything but over the past 12 months.
The U.S. stock market, characterized by the S&P 500, has been on a tear since the artificial intelligence (AI) revolution began in early 2023. The index has risen approximately 24% over the past year alone, dwarfing its historical annualized average of about 10%.
Yet, a popular high-yield dividend stock has trounced the market, with total returns exceeding 63% over the past year. Which stock can claim such impressive returns? It's not an AI company or "Magnificent Seven" stock, but AT&T (NYSE: T), showing that market-beating investment returns can come from almost anywhere. Now that the stock has your attention, is AT&T's eye-popping rally over, or is it just getting started?
You probably know AT&T. The company has been around for generations and is one of three primary wireless network operators in the United States, along with Verizon Communications and T-Mobile US. Investors may also know that AT&T stock has long offered a big dividend and little else. The stock price is virtually flat over the past decade -- even after the recent rally.
