AT&T Inc., (T) together with its subsidiaries, provides telecommunication services to consumers, businesses, and other service providers worldwide. Its Wireless segment offers wireless voice communication services, including local wireless communications service, long-distance service, and roaming services.
AT&T is the largest telecommunications company in the United States. The company has had a strong history of increasing its dividend. In the last 15 years, the company has doubled its dividend. The current yield is around 5.9% and the company is a Dow component. AT&T is definitely one stock you should consider for your retirement portfolio. The company is trying to acquire T-Mobile (OTCPK:DTEGF) and the acquisition is currently pending approval from regulatory agencies. Many of you use AT&T and continue to pay those hefty phone bills. Even those that hate AT&T still use it due to its monopoly-like status. This is a company that will continue to make money in good times and bad. I highly recommend it as a long-term holding.
Intel Corporation (INTC) engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds.
Intel (INTC) is basically a monopoly in the PC market. If you have a PC, it most likely has Intel chips inside. Unfortunately, the recent downturn in PC sales has also become a drag for the company. The company gave cautious outlook guidance, citing a slowdown in sales. The recent decline in the stock has allowed the yield to rise to 4.3%. With a forward P/E of 7.8, I believe the market is pricing in a slowdown in sales. I think the stock is worth a buy at these levels.
There may be further downside in both stocks. However, if you are willing to hold long term, I believe you will be rewarded quite nicely. Both stocks are cash cows and have a higher yield than U.S. Treasuries. These Dow components will be around for a very long time and you should consider them for your income portfolio.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.