Want $1,000 in Dividend Income? Here’s How Much You Have to Invest in AT&T Stock

AT&T




(NYSE: T)

is one of the most iconic stocks ever. The company’s history stretches


all the way


back to the late


1800’s


, making it one of the oldest publicly traded American companies.

In addition to its long history


of existence


, AT&T has also paid


a


regular


dividend


for more than 30 years.


It’s a decent one, too. The company’s dividend is $1.11 per share annually, spread over four quarterly payments of $0.2775 per share.

That means that


, as of this writing,


AT&T shares have a forward dividend yield (annual dividend


payment divided by stock


price) of 5.39%.

In order to


calculate how many shares of AT&T stock an investor would need to generate $1,000 in dividend income,


simply


divide 1,000 by the annual dividend.

So, for example, here’s the formula with figures as of Sept. 4:

At a recent price of $20.59 per share, an investment of about $18,550


should generate $1,000 in dividend income over a year.

Of course, it’s important to remember that several factors could change how much income


is


ultimately


generated


.

For one, AT&T, like all public companies, could alter its dividend payouts


— either


up or down.


In fact, in 2022, AT&T cut its dividend payout after
the spinoff of its WarnerMedia assets


.

Second, as the price of AT&T shares changes, so does the stock’s forward dividend yield. Therefore, if AT&T’s stock price decreases, an investor could purchase fewer shares but


could


still generate $1,000 (or more) in dividend income.

Income-seeking investors


need to


do their homework before buying dividend stocks. Remember: A company’s underlying financial health is just as important — if not more important — than the size of an expected dividend payment.