AT&T or Walmart? Dividend Yield vs. Dividend Growth

When looking to build a long-term portfolio of stocks that pay high dividends, investors usually come up with a mix of stocks that either have high dividend yields or high dividend growth rates. It is difficult to find good companies that have both. This means that there is often a choice to be made. All else equal, should one invest in the company that has that enticing high dividend yield, but a low dividend growth rate, or does one exude patience and invest in the company with a relatively low yield, but a high dividend growth rate? To help answer this question I looked at two companies that offer these different alternatives: AT&T (T)and Walmart (WMT). AT&T: Div Yield 1 Year DivGrowth Rate 5 Year DivGrowth Rate Payout Ratio 6.10% 2.40% 5.40% 50.00% Walmart: Div Yield 1 Year DivGrowth Rate 5 Year DivGrowth Rate Payout Ratio... Read more