Strong-Yielding Dividend Stocks

Dear Mr. Berko: I have $9,000 that I would like to invest in some safe, solid stocks and get a safe yield of at least 5 percent and also get some growth. What would you recommend to me? I also have $9,000 that I would like to invest in some stocks that can have a change for growth and get 10 percent or better. I already own some of those mortgage REITs, but they don't have any growth potential, so please don't recommend any of those kinds of stocks. And what do you think of Facebook now that it is public? Do you think I should buy the stock?

Dear EP: AT&T (T-$33) yields 5.3 percent, and I think it's a jim dandy, long-term income stock with modest but definite, long-term growth potential. But owning T for appreciation is as exciting as watching iron rust and waiting for it to appreciate may test your patience. Its dividend, though, which was increased in 15 of the last 16 years (86 cents in 1996 to $1.76 in 2012), should warm the cockles of your heart. But even as AT&T trades lower the dividend, which is almost certain to grow each year, it's dependable as a mud pie in July. While it may not double its share price in a dozen years, its dividend can increase significantly in that time frame.

Source: NewsOK

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