The Motley Fool·2025-03-30 05:32Core Viewpoint - Dividend stocks provide income and are particularly beneficial during uncertain market conditions, making them a valuable addition to investment portfolios [1][2]. Group 1: AT&T - AT&T's stock has increased over 60% in the past year after a challenging five-year period [3]. - The company reduced its dividend from $0.52 to $0.2775 per share in early 2022 to manage debt and focus on its core telecom business [3][4]. - AT&T's free cash flow is projected to reach $17.6 billion in 2024, supporting its dividend and debt obligations while allowing for investments in broadband and fiber [4]. - The current dividend yield is 4%, which is three times the S&P 500 average, although lower than its historical average of 8% [5]. - Fiber revenue grew by 18% year over year, with the addition of 1 million customers in 2024, marking seven consecutive years of customer growth [7]. - The telecom industry remains stable, positioning AT&T as a leading player and a suitable buy-and-hold dividend stock [8]. Group 2: Coca-Cola - Coca-Cola's products are globally recognized and distributed in over 200 countries, making it a recession-resistant company [9]. - The company offers a quarterly dividend of $0.51, with an average yield of around 2.9% over the past year, and has increased its dividend for 63 consecutive years [10]. - Over the past decade, Coca-Cola's dividend has increased by 55%, showcasing its reliability [10]. - The company continues to innovate by expanding its product range beyond flagship beverages to include water, coffee, tea, juices, plant-based drinks, and alcohol [13]. - Coca-Cola is considered a smart investment for those seeking reliability and consistent shareholder rewards [13].