By Amy Calistri, The Daily Paycheck

AT&T (T) pays more dividends than any other company in America. In total, it distributes over $2.5 billion every quarter, or about $10.2 billion each year.

And this isn't some special one-time dividend. This company has paid a dividend for decades... and raised payments for 28 consecutive years, even through the 2008-2009 downturn. Right now the stock pays a 5.6% yield. But dividends are growing quickly. In the past decade, the dividend payment is up 72%.

That dedication to dividends has paid off. Today, AT&T pays more in dividends than any other company in America.

I don't think I need to tell you too many details about AT&T's business for you to know where those dividends come from. As one of the nation's largest telecoms, the company earns a bundle in recurring revenue for providing wireless, digital cable, and Internet services.

But can the company continue to pay its massive dividends ... and continue to grow them?

AT&T certainly seems confident it can. In fact, in January the company announced a $9 billion buyback plan (equal to about 5% of shares outstanding). Reducing the share count will allow for more flexibility in meeting the dividend.

Meanwhile, the rise of smartphones has business booming. Last quarter, smartphone activations were up 60% year-over-year, helping lead to a 10% rise in wireless revenues.

But the truth is, AT&T's yearly results were down in 2011 compared to 2010. In fact, the company saw net income of just $0.66 per share for the year -- well below the $1.76 per share it pays in dividends.

The main reason for its low earnings is one-time events that occurred in the fourth quarter: pension charges and a break-up fee from its failed buyout of T-Mobile. Taking out those one-time expenses, the company earned $2.20 per share -- more than enough to cover the dividend.

There's no doubt AT&T is facing some headwinds. Large debt and a capital-intensive business take up money that could otherwise be used for dividends.

But there is also little doubt the company is dedicated to paying -- and increasing -- dividends to its investors.

After all, you don't pay more than $10 billion a year in dividends if you aren't serious about putting money in your investors' pockets.

I own AT&T for my $200,000 real-money Daily Paycheck Portfolio.

Related Articles

• Income expert eyes Nuveen Floating Rate
• Four utilities with 5%+ yields
• 10 blue chips for quality & yield