14 Best Performing Dividend Stocks To Buy Now

3. AT&T Inc. (NYSE:T)

Year-to-Date Return as of March 7: 18.40%

AT&T Inc. (NYSE:T) ranks third on our list of the best performing stocks that pay dividends. The American telecommunications company continues to experience steady growth in its wireless and broadband segments, driven by its bundling strategy. In the fourth quarter, the company added 839,000 retail postpaid subscribers, including 482,000 new postpaid phone customers. However, prepaid subscriptions declined by 119,000, reflecting the ongoing impact of the Affordable Connectivity Program (ACP) ending last spring.

For Q4 2024, AT&T Inc. (NYSE:T) reported strong financial results, with revenue rising 0.6% year-over-year to $32.3 billion. The company posted an operating income of $5.3 billion and a net income of $4.4 billion. Its mobility segment remained a key growth driver, with revenue climbing 3.3% to $23.1 billion. Both mobility service revenue and equipment sales saw a 3.3% increase, reaching $16.6 billion and $6.6 billion, respectively. In addition, postpaid phone average revenue per subscriber (ARPS) edged up 0.9% to $56.72.

With a strong cash position, AT&T Inc. (NYSE:T) continues to prioritize shareholder returns. In the latest quarter, the company generated $11.9 billion in operating cash flow, while free cash flow totaled $4.8 billion. Currently, it pays a quarterly dividend of $0.2775 per share and has a dividend yield of 4.09%, as of March 7.