The telecom industry is rich with companies paying both high and solid dividends. When looking at telecom companies, is important to have both a stable stream of dividend income, as well as diversity geographically. Listed below are five high yielding telecom companies to consider for your portfolio.
1. Vodafone (VOD)
The first stock on my list, Vodafone, is a UK company which currently has a dividend yield of over 5%. As of November 2010, the company had over 340 million subscribers, with significant operations in India, Europe, and elsewhere around the world. It is also important to note that Vodafone owns 45% of Verizon, making it a major player in the US phone market as well.
2. AT&T (T)
This pure American play has a yield of almost 6% and with a market cap of over $170 billion, it is the big dog in the US. While it is second to Verizon in number of subscribers, AT&T is currently trying to buy T Mobile from Deutsche Telecom, which would make it the largest phone company in the US. One possible downside to this stock is that if the deal were to fall through, the shares could take a hit.
3. Telkom Indonesia (TLK)
When talking about emerging markets, discussion usually gravitates to the BRICs (Brazil, Russia, India, China), but Indonesia is one emerging market that is often overlooked. The nation is rich with oil reserves and has the fourth to largest population in the world. The stock currently has a yield of over 4.2% and a market cap of almost $18 billion.
4. Telefonica (TEF)
Telefonica is a play on emerging markets, specifically in Central and South America. The company has over 290 million subscribers (as of March 2011) which includes the 60 million customers of Vivo, Brazil’s largest mobile phone company. Telefonica also owns a 9.7% stake in China Unicom. A possible headwind is its home nation of Spain, where the economy continues to deteriorate. The stock currently yields around 9%.
5. Chunghwa Telecom (CHT)
Chunghwa Telecom is Taiwan’s largest telecommunications company and currently yields more than 5.4%. The company is Taiwan’s largest internet, broadband, mobile, and fixed line operator, and is one of the most profitable Asian telecom companies.
Dividend stocks provide a source of income to grow your portfolio as well as a source of income during retirement. The companies listed above may be able to provide opportunities for you in terms of growth and income. It is important to consult a financial advisor regarding your investments.
Full Disclosure: I am currently long Telefonica, but have no plans to initiate any new positions of any securities mentioned above in the next 72 hours.
Happy investing to all. May the market be kind.