Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

With a dividend yield that weighs in at 5.5%, telco giant AT&T ( T) is the highest-yielding Dow name by a long shot. And outperformance has been the result: In the last year, AT&T has beaten its home index by around 7% when dividends are factored in. That performance looks primed to continue in 2012.

AT&T owns the largest cellular carrier business in the country, a fact that's often lost on investors. While top rival Verizon ( VZ) has more subscribers, the firm only owns 55% of its cellular cash cow, versus AT&T's 100% ownership of AT&T Mobility. Early adoption of the iPhone left AT&T with a massive chunk of higher-return smartphone customers, which, when coupled with the firm's legacy landline business, throws off serious cash flows.

That should help guarantee that AT&T's payouts keep flowing in the future.

AT&T shows up on a recent list of 10 Dividend Stocks Still Paying Outsized Yields.

If you liked this article you might like

Dow, S&P 500 Set New Records as Fed Moves to Unwind Balance Sheet

Stocks In Negative Territory as Chances for December Hike Surge

The Wait for 'Milestone' Fed Meeting Keeps Stocks in Flux

The 6 Medications Being Used to Tackle the Opioid Epidemic