Consider International Telecoms for Big Dividends: China Mobile Ltd. (CHL), Vodafone Group Plc (VOD), and More

Page 1 of 2

For most investors, the prospect of buying telecommunications stocks usually involves the familiar U.S.-based giants. While domestic stocks are certainly a good place to look, there are interesting names to be found within the international telecom sector.  Investors looking for international diversification may want to give these stocks further consideration.

7 Reasons Why Investors Should be Afraid of ChinaChina Mobile Ltd. (NYSE:CHL) is a $220 billion giant based in Hong Kong.  China Mobile provides telecommunications services primarily in Mainland China.  The company has more than 180,000 employees and serves more than 700 million customers, making it the largest telecom carrier in the world.  The stock looks cheap, with a trailing price-to-earnings ratio of 11 times and a forward P/E of 9.  In addition, the company has roughly $15 per share in cash.  The stock has performed well recently from a fundamental basis, with revenues during the first three quarters climbing 6% year over year.  China Mobile pays a semi-annual dividend, which amounts to a nearly 4% yield at current prices.

Vodafone Group Plc (NASDAQ:VOD) is a telecom company based in the United Kingdom.  The company carries a market capitalization north of $130 billion.  Vodafone may be an unfamiliar name to investors in the United States, but America accounts for a major component of Vodafone’s business.  Vodafone owns a 45% stake in Verizon Wireless and receives hefty dividends from this stake.  As a result, Vodafone has traditionally taken this cash and used it to fund dividends to its own shareholders.  Recently, Vodafone announced a share buyback as well.  At current prices, Vodafone’s semi-annual dividend yields more than 5.5%.

France Telecom SA (NYSE:FTE) is the smallest company of the three, with a market value of approximately $30 billion.  However, its dividend is anything but small.  At current prices, this stock yields near 14%.  Such a high yield in this stock is the result of both modest dividend growth, as well as a significant collapse in the company’s stock price.  Over the last five years, the world has seen a gradual recovery from the depths of the Great Recession.  Unfortunately for France Telecom’s shareholders, no recovery has occurred in the company’s shares.  The stock price has gradually declined since 2008, from over $35 to its current level near $12.  Despite the dramatic decline, the company has maintained its dividend.  The company advised investors that third-quarter revenue declined more than 3% versus the prior year.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!