Is the Rally Over for These Dow Dividends?

With the eurozone at the brink of collapse and emerging economies in China and Latin American slowing down, many investors have looked close to home for stability and yield in the telecom sector. With limited international exposure and dominant positions in the U.S. wireless industry, AT&T and Verizon  have become attractive. With total year-to-date returns (including dividends) of 28% and 17%, respectively, AT&T and Verizon have easily outpaced the Dow Jones Industrial Average. In the following video, analysts Austin Smith and Brenton Flynn discuss the likelihood of this kind of outperformance persisting in the near-term.

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Austin Smith has no positions in the stocks mentioned above. Brenton Flynn owns shares of AT&T. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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