Dividend Stocks Outperform as Rates Decline: AT&T and VICI Properties Emerge as Top Picks

Income investors are rotating back into dividend stocks as interest rates retreat from their 2022-2023 peaks. The knee-jerk rush toward CDs and Treasuries has reversed, but savvy market participants aren't chasing yield—they're targeting companies with durable competitive advantages.

AT&T exemplifies this strategy. The telecom giant's radical simplification—divesting media assets to focus on 5G and fiber—is paying dividends in both literal and figurative terms. Wireless postpaid subscriptions grew by 1.7 million in 2023, with fiber connections expanding by 1.1 million. These gains offset legacy declines, fueling an 18% free cash FLOW surge that supports its 7.3% dividend yield.

VICI Properties, the REIT specializing in casino real estate, offers similar stability. Its triple-net leases with inflation escalators provide recession-resistant cash flows, while a 5.8% yield compensates for slower growth. Both stocks trade at reasonable valuations—12x forward earnings for AT&T, 15x for VICI—making them rare income plays that don't sacrifice financial sustainability.