All common stocks, income trusts, master limited partnerships, REITS and other pass-through entities have what is called a payout ratio. It's a number that essentially says how much of the dividend is paid out from each dollar of net income.

A company like AT&T (T) has a payout ratio of 77%, meaning that the company retains 23 cents of every dollar after dividends are paid out to put back into the business. This is a decent ratio, but something around 50% to 60% is more ideal.

When Apple (APPL) launched the iPhone three years ago, the big attraction was the sleek design and cool graphics. However, there was something else that was truly innovative: the app store. Basically, Apple allowed third-party developers to create applications for the iPhone, which certainly benefited customers. It has turned into a cash machine, as Apple gets a cut of all the downloads.

Wanting to capitalize on this -- as well as try to slow down Apple -- a group of mobile companies have formed an alliance, called the Wholesale Applications Community. The members include 24 companies, such as AT&T (T), China Mobile (CHL), Verizon (VZ), NTT DoCoMo, Bharti Airtel and Vodafone (VOD).

Another quarter has come and gone for telecommunications expert Verizon (VZ). And with it, another opportunity for management to flaunt its cash-generation abilities. Earnings may be down, but I've said it before and I'll say it again here: When Wall Street thinks Verizon, it thinks attractive dividend yield.

On an adjusted basis, the company made 54 cents per share in the fourth quarter. This was seven cents less than last year's income figure. Unfortunately, it was also a penny below expectations, according to our earnings preview.

Apple (AAPL) just smashed quarterly expectations as iPhone sales doubled and the company generated its highest revenue quarter.

Yes, it could get way, way better. Tim Moran with Oppenheimer & Co. believes that the iPhone will reach all major U.S. wireless carriers in 2010. It's as if Apple hasn't sold enough iPhones already. That number could be punched up in a huge way if Moran is correct.

So, it isn't bad enough that Tiger Woods ruined his marriage and soiled his squeaky-clean reputation. Apparently he cost his corporate sponsors $12 billion in stock value as well. According to a study conducted by UC Davis economics professors Victor Stango and Christopher Knittel, Tiger lost his sponsors a "collective $5 to $12 billion." This loss outpaces "several decades' worth of Tiger Woods' personal endorsement income."

The study examined the stock market returns during the 13 trading days after Tiger's car crash, a period concluding a week after Tiger's announcement of an indefinite leave of absent. The two economics professors then compared the returns for Tiger's sponsors during this 13-day period to those of the total stock market and each of the companies' closest competitor. Returns for the four years prior to the car accident were also taken into account in order to establish the stocks' historic performance.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Fundamentally, Amdocs (DOX) has a bargain basement valuation based on its price to growth," says Melvin Pasternak, in selected the stock as his top pick for 2010.

In his Trade of the Week, he adds, "Technically, on a two year weekly chart the stock has broken out to the upside."

Analyst Upgrades

• JPMorgan upgraded Mohawk (MHK) to overweight from neutral. The firm finds shares attractive following their recent underperformance and has a positive outlook for the building products space in 2010. JPMorgan has a $53.50 price target on the stock.
• Stephens upgraded Alexander & Baldwin (ALEX) to overweight from equal weight to reflect improving volume trends and the upcoming move of the company's Transport division from Japan to Guam, which it believes will serve as a positive catalyst. Stephens raised its target price on shares to $41 from $26.
• Deutsche Bank upgraded Unum Group (UNM) to buy from hold as it believes an acceleration of growth and potential buybacks could serve as positive catalysts. The firm raised its target on shares to $26 from $25.
• News Corp. (NWS) was raised to neutral from sell at Pali Capital.
• CA Inc. (CA) was upgraded to buy from hold at Jefferies.
• Pactiv (PTV) was upgraded to buy from hold at KeyBanc.

AT&T (T) has been the lucky recipient of two million new customers, thanks to the iPhone. But let's not forget that AT&T was Apple's (AAPL) second choice and only got the deal because Verizon (VZ) passed up the opportunity. Now Verizon is intent on making up lost ground and then some, directly targeting iPhone users and making a huge splash with its Android smart phone.

AT&T better be shaking in its shoes -- and shareholders should rethink their stake in this stock.

Next: Dog of the Dow #3: Bank of America (BAC)

"AT&T (T), one of the oldest and most well-known companies in the world is on the rise again," says income expert Carla Pasternak, who has chosen the issue as her latest "High-Yield Security of the Month."

In her High Yield Investing, she explains, "Investors may not realize just how well the company is weathering the recession or that it is now paying a juicy 6% yield."

"Formed in 1885 as a subsidiary of the American Bell Telephone Company, AT&T is now one of the largest telecom providers in the world. It also owns subsidiary AT&T Mobility, the second largest wireless provider in the US; it is also the largest broadband provider in the nation.

BT Group, which virtually owns the UK telecommunications market, isn't waiting for Google (GOOG) to launch a full attack. The company probably expects to be under assault from the search engine (and advertising and e-mail) giant, so it's taking early action. Google Voice is still being tested, but words like "free" and "powerful" and "internet-based" are bound to inspire fear in even the most established of companies.

To protect itself from the eventual attack from Mountain View, BT picked up Ribbit Mobile, and testing is in progress. Ribbit's technology has some overlap with Google Voice and even beats it with a few capabilities, according to Bloomberg. Ribbit just launched its beta product this month. It allows either the user's current phone number or a new one from Ribbit -- which is no different from Google's alternative. The product suite is generally the same, with phone- and web-based voicemail retrieval and automatic transcriptions that can be sent by text message or e-mail. For an extra fee, BT's Ribbit does provide human transcription, though it is free during testing. And, calls can be taken directly from a computer, using a microphone and speakers.

Cable giant Comcast (NASDAQ: CMCSA) posted Q3 numbers earlier today. It seems like the company is doing well with earnings growth and cash flow, even if revenues moved up a meager 3%.

Adjusted earnings per share grew over 20% to 28 cents per share. According to our earnings preview, the market was looking for 25 cents per share. Operating cash flow increased a little under 3%, but free cash flow went up almost 20%, aided by a smaller amount of capital expenditures compared to the previous year's similar quarter. I'm sure shareholders are more than satisfied with the growth rate of the green stuff over the past three months. Comcast saw excellent expansion of free cash over the last nine months, too.

Philadelphia-based Comcast Corp. (NASDAQ: CMCSA), which is said to be buying a controlling stake in NBC Universal, is scheduled to discuss its third quarter 2009 financial results in a conference call Wednesday at 8:30 AM ET. You can catch the live webcast of the call on the company's website.

During the three months that ended in September, Comcast launched an internet portal for kids, a collaboration with the NFL, and a trial of On Demand Online. Analysts surveyed by Thomson Reuters expect this leading entertainment, information, and communication provider to report earnings of $0.25 per share, just a penny per share lower than in both the previous quarter and a year ago. Comcast earnings have beat the Street view in the past four quarters, by as much as seven cents per share. Revenue for the third quarter is expected to be 3.5% higher to $8.9 billion.

Verizon Communications Inc. (NYSE: VZ) issued Q3 data on Monday. According to the press release, the telecommunications entity made, on an adjusted basis, 60 cents per share. Disappointing, since that's six pennies less than last year's comparable number. However, it was a penny ahead of analyst expectations, according to Reuters.

Of course, when discussing Verizon, what tends to receive focus is cash flow. As we all know, the company is a famous dividend play. Many investors consider this angle to be not only valuable, but an added safety element as well.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Altria Group Inc. (NYSE: MO) Q3 earnings beat by a penny but sales fell short of expectations; shares fell.
• AMR Corp. (NYSE: AMR) reported a Q3 net loss and plunging revenue but also raised $4 billion in cash.
• BB&T Corp. (NYSE: BBT) topped Q3 earnings expectations but said bad-loan provisions nearly doubled.
• Boeing Co. (NYSE: BA) missed estimates and posted a Q3 loss due to delays for a couple of jet products.
• Capital One Financial Corp. (NYSE: COF) shares rose after it reported better-than-expected Q3 numbers.
• Coca-Cola Co. (NYSE: KO) posted a better-than-expected Q3 profit but sales fell short, and shares fell.

Dallas-based AT&T Inc. (NYSE: T), the exclusive U.S. carrier for the iPhone, is scheduled to discuss its third quarter 2009 financial results in a conference call Thursday at 10:00 AM ET. You can catch the live webcast of the call on the company's website.

During the three months that ended in September, AT&T revamped many of its retail locations, expanded its global wi-fi presence, and declared a quarterly dividend. Analysts surveyed by Thomson Reuters expect this leading provider of wireline voice communications services in the U.S. to report that earnings grew 6.0% from a year ago to $0.50 per share. But revenue for the quarter is expected to be 1.5% lower to $30.9 billion.