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8 Telecom Stocks with Big Dividend Yields


What stock market sector provides good yield, relative stability and potential for modest growth? The old dividend standby: telecommunications.

Yields of telecom stocks have become even more attractive lately as speculation grows that the Federal Reserve will delay raising short-term interest rates because of the tepid global economy. The average large-company U.S. telecom stock yields 4.9%, compared with 2.2% for 10-year Treasury bonds and near zero for cash-type investments, such as money market funds.

Of course, nothing is free on Wall Street. In a note published October 1, Morgan Stanley said it was cautious about the telecom sector because of increased competition among wireless and broadband services, among other reasons. So if you want reliable income, stick with telecoms that can increase revenues or generate enough cash to sustain the dividend. Look overseas, too, where industry consolidation and expansion into emerging markets is driving growth for some companies, despite economic woes. These eight stocks, listed in alphabetical order, meet that criteria and have attractive yields, to boot.


All prices, yields and returns are as of October 23.


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