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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

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!