The Ultimate Guide to Building a Dividend-Paying Portfolio That Generates $1,000 in Yearly Income

Saturday 29th of March 2025 13:15:00

Here's How Many Shares of ATT You Should Own to Get the Dividend Payout You Want

By Daniel Foelber, Fool.com

Investors seeking a steady income stream often turn to dividend-paying stocks. One of the most iconic dividend payers is AT&T (T), a telecommunications giant with a long history of rewarding shareholders. But with the stock's recent volatility, it's essential to know how many shares you should own to get the dividend payout you want.

AT&T's Dividend Payout

AT&T has consistently paid a dividend to its shareholders since 1925. The company has increased its dividend payout for 40 consecutive years, making it one of the most reliable dividend payers in the market. As of March 2025, AT&T's quarterly dividend payout stands at $0.11 per share, translating to an annual dividend yield of around 5.5%.

How Many Shares Should You Own?

To determine how many shares you should own to get the dividend payout you want, let's consider the following factors:

  1. Dividend yield: AT&T's dividend yield is around 5.5%. This means that for every $1,000 invested in the stock, you can expect to earn around $55 in dividend income per year.
  2. Dividend payout: AT&T's quarterly dividend payout is $0.11 per share. To calculate the total dividend payout, multiply the number of shares you own by the dividend payout per share.
  3. Your desired dividend income: Determine how much dividend income you want to earn per year. This will help you calculate the number of shares you need to own.

Example: Let's say you want to earn $1,000 in dividend income per year from AT&T. To calculate the number of shares you need to own, follow these steps:

  1. Divide your desired dividend income by the dividend yield: $1,000 / 5.5% = $18,182
  2. Divide the result by the dividend payout per share: $18,182 / $0.11 = approximately 165,000 shares

Conclusion

To get the dividend payout you want from AT&T, you should own around 165,000 shares, assuming a 5.5% dividend yield and a quarterly dividend payout of $0.11 per share. However, this calculation is just a rough estimate and doesn't take into account other factors that may affect your investment, such as stock price fluctuations or changes in the company's dividend policy.

Investors seeking a steady income stream from AT&T should consider their individual financial goals and risk tolerance before making a purchase. With a long history of dividend payments and a relatively low volatility, AT&T remains a popular choice for income-focused investors.