This article discusses the merits of both Verizon (VZ) and AT&T (T) in this current low interest rate environment. While both stocks offer attractive dividend yields, the multiples are quite high on both securities. If you look across the pond to Europe an investor can find much more attractive payouts and earnings yields. Obviously there is more risk in Europe right now, but companies such as Telefonica (TEF), and France Telecom (FTE) are diversified cash flow machines that will be survivors. It can be more helpful to look at earnings yields versus dividend yields over the long term, and this metric really highlights the relative attractiveness of the European companies.
http://online.wsj.com/article/SB10001424052702304441404577483000832815014.html?mod=markets_newsreel