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Dividend.com: AT&T Has Apple Juice

Tom Reese and Paul Rubillo

AT&T Phones in Some Profits

AT&TT reported a revenue gain of 4.7% to $30.87 billion, a touch below what had been expected. Its earnings per share number of 76 cents matched the estimates on the Street.

Sales of AppleAAPL iPhones (sold exclusively in the U.S. through AT&T) helped offset what has been an accelerated loss of AT&T's traditional local-calling business line customers. The company now has 72.9 million mobile customers, making it the No. 1 carrier in the U.S. Verizon Wireless, a joint venture of Verizon CommunicationsVZ and VodafoneVOD, is second with an estimated 69 million customers. What may be surprising to investors is that AT&T now has 14.7 million DSL broadband subscribers, making it the largest supplier of high-speed Internet service in the U.S.

For investors, we think AT&T offers good value at its current levels. The company has a 5.03% dividend yield, based on last night's closing price of $31.82. The good news from AT&T today was a bit of a relief after Vodafone's not-so-good news yesterday.

Pepsi Investors Get Pop on Earnings Report

PepsiCoPEP came in with solid earnings today, as the company's revenue rose 14% to $10.95 billion. Wall Street analysts had been expecting earnings of $1.02 per share on revenue of $10.55 billion. Management credits strong international growth as well as a little help from the weak dollar.

Pepsi management believes it will continue to raise prices to offset what may amount to a 9% to 10% rise in commodity costs for the rest of 2008.

The highlight of this past quarter came from the company's PepsiCo International division, which includes snacks and beverages outside of North and Latin America. The unit delivered a revenue increase of 25%. The company did mention it is adding $1 billion to its share-repurchase program. We are hoping it will allocate some funds to a dividend increase as well.

For investors, we think the shares provide a solid pick, and dips below $60 would be a nice area to add to your holdings. Pepsi has a dividend yield of 2.27%, based on last night's closing price of $66.19.

McDonald's Benefits From New Consumer Spending Habits

McDonald'sMCD just beat its second-quarter estimates by 8 cents, after factoring in a 10-cent gain from its sale of sandwich chain Pret a Manger. Sales were up 4% for the quarter, to $6.08 billion.

Price-conscious consumers are visiting the fast-food chain more often these days, as they are straying from pricier family neighborhood chains. This phenomenon is evidenced by the fact that DineEquityDIN, parent of IHOP and Applebees, had recently announced big misses in its earnings estimates. We think McDonald's is a solid play here for investors, and if shares get below $55, investors would have a "golden" investment opportunity!

McDonald's has a dividend yield of 2.50%, based on last night's closing price of $60.12.

Boeing Delays Make for a Rough Landing

BoeingBA came in with a lackluster second-quarter report, as a delay in the company's defense program forced it to take a charge of $248 million. The company is reporting its backlog rose 6 percent to a record $346 billion, as orders for commercial airlines came in.

Boeing is reaffirming its 2009 earnings per-share guidance of $6.80 to $7. That would put the company at less than 10 times earnings. Couple that with Boeing's dividend yield of 2.31% (based on last night's closing price of $69.26), and we think the shares are starting to become very attractive. If the stock can sustain its current levels, and oil continues to drop, we think this has a good chance of reaching our "Recommended" list.

ConocoPhillips Revenue Gushes Up 50%

ConocoPhillipsCOP just reported a solid quarter in which sales were up 50% to $71 billion. Earnings per share came in at $3.50, 10 cents above what analysts had expected. ConocoPhillips is the third largest U.S. oil company.

The one bit of bad news came on the refining margins side. Earnings in that sector fell substantially, from $2.36 billion to $664 million. This hit on the company's margins reflects the difference between the cost of crude and what the company makes on refined products such as gasoline. Oil prices have come down a bit lately, so the refining numbers should improve.

ConocoPhillips has a dividend yield of 2.23%, based on last night's closing price of $84.31. We like the company, and investors right now are paying only six to seven times earnings, using the low end of 2009 estimates. The company is a decent buy here, but would like it a lot better in the low-70s if it falls to that level.