Here's How Many Shares of AT&T You Should Own to Get $1,000 in Yearly Dividends

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Selena Maranjian, The Motley Fool

Sat, Mar 29, 2025, 6:15 AM 2 min read

Dividend-paying stocks are hard to bushed for income. If you're retired, you tin usage that wealth for your surviving expenses, and if you're inactive acold from retirement, you mightiness simply reinvest those dividends into much shares of banal -- possibly shares that volition commencement kicking retired dividend income of their own. Dividends are a beauteous thing.

Let's accidental that you're looking to cod astir $1,000 per twelvemonth successful dividends, and you're funny successful investing successful telecom elephantine AT&T (NYSE: T). How galore shares bash you request to buy? A small elemental mathematics volition get you the answer.

Someone doing calculations astatine a blackboard.

AT&T was precocious trading for astir $27.30 per share, and it was paying retired $1.11 annually successful dividends per stock -- successful quarterly installments of $0.2775. (Most dividend payers wage quarterly.) AT&T's dividend output -- the yearly dividend sum divided by the caller stock terms -- was a coagulated 4.1%, meaning that if you bought that day, you'd person astir 4% of your acquisition terms successful dividends each year. (Note, too, that steadfast and increasing dividend payers thin to hike their payouts implicit time, though AT&T really shrank its dividend successful 2022.)

To find retired however galore shares you'll request to ain to cod $1,000 implicit the people of a year, simply disagreement $1,000 by that $1.11, and you'll get astatine the answer: 901. At the caller stock terms of $27.30, those 901 shares volition outgo you astir $24,600.

Before you unreserved to bargain into AT&T for its dividend, marque definite you've work up connected the institution and are assured that it volition bash well. Its past net report, for its 4th fourth and 2024, was solid, with gross and subscribers some increasing. The institution plans to walk astir $40 cardinal connected dividends and banal buybacks successful the coming 3 years, and a dividend summation is simply a possibility, too.

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