AT&T Inc. (NYSE: T) had a sale of $2 billion in corporate bonds slated for Tuesday. Investors need to care about this offering because this represents AT&T’s first real attempt to go raise money from the capital markets since it announced that it was acquiring DirecTV (NASDAQ: DTV).

Another reason investors need to pay attention here is that this is the first AT&T 30-year issue seen in some time. Proceeds are expected to be used for general corporate purposes, which of course includes repayment of maturing debts.

Another reason that investors have to care here is that AT&T is the highest dividend of the Dow Jones Industrial Average. While it is not the absolute highest dividend yield among all telecom stocks, we just featured AT&T as one of the safest high-yielding dividends for investors. This bond offering only emphasizes that dividend safety rather than questions it.

The 140 basis point to 150 basis point spread over Treasuries likely generated a yield of 4.8% or so. That is not exactly dirt cheap financing on the surface, but it is one more effort that will push out its maturity schedule if the company can continue it.

Now consider this – AT&T pays a 5.2% yield to its common stock holders versus 4.8% for borrowing out 30-years to its creditors!

Fitch Ratings has assigned an ‘A’ rating to the offering. Fitch still has AT&T’s issuer default rating (IDR) and its debt securities on Rating Watch Negative. The ratings agency put AT&T on Rating Watch Negative back on May 19 when the merger was confirmed.

ALSO READ: The 10 Highest-Yielding Dividends of the S&P 500 That Are Safe To Hold

AT&T shares closed down 0.7% at $35.20 even though the company tried to raise its subscriber guidance on Tuesday. AT&T shares have a consensus price target of only $35.92, and the stock’s 52-week range is $31.74 to $36.86.

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