In this article, we will take a look at some of the best dividend stocks from the telecom sector.
Telecom stocks gained roughly 11% in 2024, though the sector’s performance lagged behind the broader market, with the S&P 500 climbing about 25% and the NASDAQ advancing close to 30%.
Over the past century, the telecom industry has gone through periods of stronger revenue expansion, first fueled by wireline services and later by the rise of mobile connectivity and broadband internet. Outside of these high-growth phases, the sector has generally been viewed as steady but slower-moving, typically delivering single-digit revenue growth, attractive dividend yields averaging around 4% globally, and modest profit improvements through cost efficiencies.
Looking ahead, telecom companies are expected to continue focusing on cost reductions, managing capital spending carefully, monetizing earlier investments, and leveraging mergers and acquisitions to enhance value. Those with a stronger growth focus may also look for ways to accelerate revenue beyond the pace of traditional connectivity services. Given this, we will take a look at some of the best dividend stocks in the telecom sector.
Our Methodology:
For this list, we scanned Insider Monkey’s database of nearly 1,000 hedge funds as of Q2 2025 and selected stocks that belong to the telecom sector or provide services in the industry and pay dividends to shareholders. From the resultant list, we picked 10 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment towards them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. TELUS Corporation (NYSE:TU)
Number of Hedge Fund Holders: 19
TELUS Corporation (NYSE:TU) ranks among Canada’s top telecommunications providers. The sector is bolstered by a subscription-driven model that delivers consistent, recurring revenue, making it both resilient and profitable.
Telecom providers generate reliable cash flows through their subscription-based models, which enable them to deliver steady dividend payments to shareholders. TELUS Corporation (NYSE:TU), in particular, has a strong record of dividend growth, having raised its payouts consistently for 21 years. The company currently offers a quarterly dividend of $0.4163 per share and has a dividend yield of 7.66%, as of September 24.
The demand for telecom services continues to climb as businesses adopt digital solutions and the number of remote workers and online learners expands. To capture this growth, TELUS Corporation (NYSE:TU) has committed roughly $70 billion through 2029 to enhance its 5G and broadband networks, supporting customer growth and service quality.
In addition, TELUS Corporation (NYSE:TU)’s healthcare arm, TELUS Health, has maintained solid momentum, driven by strategic investments, innovative offerings, and the expansion of its distribution channels. By harnessing technology and operational efficiencies, TELUS has also been able to manage costs and strengthen overall profitability.
10. Ubiquiti Inc. (NYSE:UI)
Number of Hedge Fund Holders: 22
Ubiquiti Inc. (NYSE:UI) is a networking technology firm that designs, manufactures, and sells wireless communication products for enterprises and internet service providers. Its offerings include network hardware, cloud-managed systems, and associated software, serving clients in over 75 countries.
A key aspect of Ubiquiti Inc. (NYSE:UI)’s strategy is its unconventional business model. Instead of a large direct sales team, the company leverages community-driven marketing, online distribution, and a worldwide partner network. Its success relies on proprietary technology, strong brand loyalty fostered by its user community, ongoing innovation through research and development, and careful management of its global supply chain.
Ubiquiti Inc. (NYSE:UI) is a solid dividend company, offering regular dividends to shareholders since the initiation of its dividend policy in 2018. The company increased its quarterly dividend by 33.3% in August to $0.80 per share. This was the company’s third dividend hike in this period. The stock supports a dividend yield of 0.50%, as of September 24.
9. Iridium Communications Inc. (NASDAQ:IRDM)
Number of Hedge Fund Holders: 33
Iridium Communications Inc. (NASDAQ:IRDM) provides global satellite-based voice and data services through a constellation of 66 low Earth orbit (LEO) satellites. Its network is distinctive for offering real-time connectivity with low latency, even in remote and polar regions. The company serves commercial clients across maritime, aviation, IoT (Internet of Things), and government sectors, supporting critical applications in defense, logistics, and emergency response.
Iridium Communications Inc. (NASDAQ:IRDM)’s recent strategy focuses on sustaining strong government contracts, including its multi-year Enhanced Mobile Satellite Services (EMSS) agreement with the US Department of Defense. The company is also expanding into new areas, such as direct-to-device (D2D) satellite connectivity and satellite-based positioning, navigation, and timing (PNT) services, following its acquisition of Satelles. Its success continues to rely on robust government relationships, consistent service revenue, and the ability to scale offerings using its fixed-cost satellite infrastructure.
Iridium Communications Inc. (NASDAQ:IRDM) initiated its dividend policy in 2022 and has paid regular dividends to shareholders since then. The company currently offers a quarterly dividend of $0.15 per share and has a dividend yield of 3.44%, as of September 24.
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