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AT&T (NYSE: T) is one of the most iconic stocks ever. The company's history stretches all the way back to the late 1800's , making it one of the oldest publicly traded American companies.

In addition to its long history of existence , AT&T has also paid a regular dividend for more than 30 years. It's a decent one, too. The company's dividend is $1.11 per share annually, spread over four quarterly payments of $0.2775 per share.

That means that , as of this writing, AT&T shares have a forward dividend yield (annual dividend payment divided by stock price) of 5.39%.

In order to calculate how many shares of AT&T stock an investor would need to generate $1,000 in dividend income, simply divide 1,000 by the annual dividend.

So, for example, here's the formula with figures as of Sept. 4:

At a recent price of $20.59 per share, an investment of about $18,550 should generate $1,000 in dividend income over a year.

Of course, it's important to remember that several factors could change how much income is ultimately generated .

For one, AT&T, like all public companies, could alter its dividend payouts -- either up or down. In fact, in 2022, AT&T cut its dividend payout after the spinoff of its WarnerMedia assets .

Second, as the price of AT&T shares changes, so does the stock's forward dividend yield. Therefore, if AT&T's stock price decreases, an investor could purchase fewer shares but could still generate $1,000 (or more) in dividend income.

Income-seeking investors need to do their homework before buying dividend stocks. Remember: A company's underlying financial health is just as important -- if not more important -- than the size of an expected dividend payment.