4 Discounted Dividends Paying Up to 12.6%

We need to talk about four of the cheapest dividend payers on the planet. I'm talking about blue-light bargain valuations and, our favorite, serious high yields!

These four pay from 4.7% to a terrific 12.6%. Yet the Wall Street suits have left them for dead, on the side of the road (or Street, if you will!). Which is fine with us careful contrarians. We'll sort through the sale rack.

Let's start with a telecom that stays cheap yet keeps paying us nearly 5% because this divvie perennially finds its way into the suits' doghouse.

AT&T (T) is one of telecom's "Big Three" alongside competitors Verizon (VZ) and T-Mobile US (TMUS) .

On the upside, it enjoys an effective triopoly of the U.S. wireless market, where barriers to entry are sky-high. It also has some business diversification, servicing some 15 million domestic broadband customers, as well as 25 million wireless customers in Mexico.

These are heavily saturated markets, however, and they have been for quite some time. That's why, from a pure price perspective, AT&T's stock has never eclipsed its pre-dot-com peak. Most of its returns over the past few years have come from the dividend, making T feel more like a bond than a stock.

AT&T slashed its dividend by almost half in 2022 in an effort to both reduce its debt and pay for the continued buildout of its 5G and fiber infrastructure. A sharp rally between 2023 and 2025 was a further drag on the yield, which eventually sank below 4%.

Shares are now paying closer to 5% again, and AT&T (which historically trades at cheap multiples anyways) looks more attractive than it has in about a year. The stock trades at less than 4 times cash-flow estimates; a 0.9 price/earnings-to-growth (PEG) ratio also suggests shares are on sale. (Remember: Any PEG below 1 implies a stock is undervalued.) We would be getting a stable stock , too, with a beta south of 0.5 signaling AT&T is less than half as volatile as the broader market.