najdorf

Must-Know Criteria for Picking Inflation Proof, High Dividend Stocks

The thing about T and VZ is that they have huge moats on an essential service. The cash flows are pretty predictable and they have access to new capital/debt whenever they need it. They could run a little more conservative on debt and payout ratios and totally eliminate financing risk, but they're still building out the wireless infrastructure that's going to generate cash flows for years to come and even in this crisis people are willing to own the debt at low yields and continue to pay the monthly bills. In a worse crisis during which people stop paying their phone bills or won't lend to companies with 70 million near-captive customers, what stock market investment is going to have a safe yield?

I wouldn't expect a lot of dividend growth out of T and VZ until they finish dividing up the country, grinding out weaker competition, and building infrastructure to support good nationwide access. But the current yield is pretty nice and there's not much risk of a cut.