EA vs T: Dividend Yield, Growth & Safety Comparison
Electronic Arts Inc. (EA) and At&T Inc. (T) are both in the Communication Services sector, making them natural rivals for dividend investors. T offers a significantly higher 4.05% yield compared to EA's 0.38%, a gap of 3.67%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | EA | T |
|---|
| Dividend Yield | 0.38% | 4.05% |
| Annual Dividend | $0.76 | $1.11 |
| 5-Year CAGR | N/A | -8.1% |
| Payout Ratio | 28% | 27% |
| Consecutive Years | N/A | 0 |
| Price | $200.48 | $28.68 |
Yield Comparison
At&T Inc. (T) currently yields 4.05%, which is attractive for the broader market. That's 3.67% more than Electronic Arts Inc. (EA), which yields 0.38%. In dollar terms, T pays $1.11/share annually versus EA's $0.76/share.
Dividend Growth
T has a 5-year dividend CAGR of -8.1%. Growth data is not available for EA. T: Dividend growth is accelerating — the 3-year CAGR of 15.5% exceeds the 5-year rate of -8.1% and the 10-year rate of -2.8%.
Dividend Safety
EA's dividend safety is rated "Safe." The payout ratio of 28% is well within sustainable levels, leaving room for future increases. T's dividend safety is rated "Safe." The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. Both have similar payout ratios — EA at 28% and T at 27%.
Income Comparison
A $10,000 investment in T generates approximately $405/year in dividend income, compared to $38/year from EA — a difference of $367/year. At $100,000, that gap widens to $3670/year.
Verdict
Frequently Asked Questions
Which has a higher dividend yield, EA or T?
At&T Inc. (T) has a higher dividend yield of 4.05% compared to Electronic Arts Inc. (EA) at 0.38%.
Which is safer for dividend income, EA or T?
Electronic Arts Inc.'s dividend safety is rated "Safe" while At&T Inc. is rated "Safe." The payout ratio of 28% is well within sustainable levels, leaving room for future increases. The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
How much income does $10,000 in EA vs T generate?
A $10,000 investment in EA generates approximately $38/year in dividends, while the same amount in T generates about $405/year.
Which has a lower payout ratio, EA or T?
At&T Inc. has a lower payout ratio of 27% compared to Electronic Arts Inc.'s 28%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
EA vs T: which is better for retirement income?
It depends on your priorities. T for current income. Many retirement investors hold both for diversification.
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