Dividend.com: Ambac Drops Payout

AT&T is a recommended dividend stock, holding a Dividend.com rating of 3.5 out of 5 stars.

Capital One to Acquire Chevy Chase Bank

Credit card issuer and bank Capital One Financial(COF Quote) announced Thursday it will acquire Maryland-based Chevy Chase Bank for $520 million in a cash-and-stock deal.

Reportedly, Capital One outbid rivals JPMorgan Chase(JPM Quote) and Citigroup(C Quote), who were also said to be interested in acquiring Chevy Chase Bank, which sports more than $11 billion in deposits, $14 billion in assets, and over 1 million customers across the Washington, D.C., and Baltimore metro areas.

The deal, which is subject to regulatory approval, is expected to close in the first quarter of 2009.

We removed Capital One from our "Recommended" list on Sept. 29, at a price of $54.55. The stock currently has a dividend yield of 4.75%, based on last night's closing price of $31.59.

These types of acquisitions are probably necessary for Capital One, which is looking to expand its deposit base and reduce its dependency on credit cards. The credit card business is expected to be extremely tough heading into next year, with consumers paring their spending habits amid the worst economic crisis since the Great Depression. We expect Capital One to continue to be aggressive in acquisitions moving forward.

Capital One Financial Corp. is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.

Nokia Lowers Fourth-Quarter Mobile Unit Forecast ... Again

For the second time in less than a month, world mobile-phone leader Nokia(NOK Quote) reduced its fourth-quarter mobile-industry outlook.

In a statement released Thursday, the company said it expects fourth-quarter industry mobile-device volumes to fall below the 330 million units it estimated in an update on Nov. 14.