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
Comments
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

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

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!