5 Core Dividend Stocks Underappreciated by Investors

We have taken a look at investments that should form a portfolio's core, meaning: a lower beta, earnings stability, durable competitive advantages, and capable leadership. While core holdings are typically bid to or above fair value, a few core holdings are under-appreciated in this market. Here they are:AT&T Inc. (T) maintains real advantages in bandwidth and smartphone technology over its major competitors Verizon (VZ) and Sprint Nextel Corp. (S). This mega cap company has continuously and predictably paid out increasing dividends since 2004. Yearly dividend payouts tend to remain the same for each year, so a consistent record makes for a predictable investment. How much bang for your buck are you getting with AT&T? A dividend of $1.71 and a close price on July 21, 2011 of $30.23 yields us 5.66%, which beats out Verizon (VZ) but is 2% less than CenturyLink (CTL). However, AT&T is... Read more