You are looking at two big bell companies that will continue to thrive through the recession. Both give a dividend of 6+% and both have EPS. I consider them to be Warren Buffet-like stocks. Looking at the results, they have both increased the EPS as the years have progressed. AT&T has increased net income year-after-year. Even though their stock prices have barely moved for the past 5 years their dividend has increased and they continue to be profitable.
I consider them both to be safe bets. Why hold a bunch of cash in the bank when you can be getting a safe 6% dividend? You also help stimulate the economy 😉
Short-term things to consider: AT&T has continued to get deals with Apple. They will be the exclusive provider of 3G for the iPad. This is a big win as the iPad is a GSM made table. In the 3rd quarter 2010, Verizon and other phone networks should be getting the iPhone. This is not for sure as their has been a good relationship of AT&T and Apple.
AT&T’s 10 Year Summary
Verizon’s 10 Year Summary
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