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.
8. Telephone and Data Systems, Inc. (NYSE:TDS)
Number of Hedge Fund Holders: 38
Telephone and Data Systems, Inc. (NYSE:TDS), headquartered in Chicago, is a telecommunications provider offering wireless services, along with cable and wireline broadband, TV, voice, and managed solutions. Its operations are carried out primarily through TDS Telecom and US Cellular, serving millions of customers nationwide.
In the latest quarter, Chairman, President & CEO Walter Carlson announced the completion of the US Cellular wireless business and spectrum sale to T-Mobile, a $4.3 billion deal that he said delivers substantial value to shareholders while strengthening the balance sheets of both Array and TDS. He explained that the company will now concentrate on its tower and fiber operations, introducing Array Digital Infrastructure, Inc. as the new identity for the towers segment. Carlson highlighted the stability provided by the new master license agreement with T-Mobile, backed by Array’s portfolio of roughly 4,400 towers. He also introduced Ken Dixon as the new CEO of TDS Telecom, noting his extensive experience in telecom and fiber.
Telephone and Data Systems, Inc. (NYSE:TDS) started paying quarterly dividends in 1974 and has raised its dividend every year since 1975. The company currently offers a quarterly dividend of $0.04 per share and has a dividend yield of 0.43%, as of September 24.
7. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 55
Motorola Solutions, Inc. (NYSE:MSI) provides hardware, software, and cloud-based systems that support critical safety and communications for public safety agencies and enterprise organizations. Its offerings include land mobile radio (LMR) systems, video security, and command center software, all built to help first responders, government bodies, and businesses operate safely and efficiently.
In recent years, Motorola Solutions, Inc. (NYSE:MSI) has focused on combining its core technologies to create a connected safety and security ecosystem. This strategy differentiates it from competitors and positions it as a key supplier for clients seeking fully integrated systems. Its success depends on continuous innovation, strong supply chain management, and solid relationships with government agencies, which generate recurring revenue through long-term contracts.
Motorola Solutions, Inc. (NYSE:MSI) currently offers a quarterly dividend of $1.09 per share, having raised it by 11.2% in 2024. This was the company’s 14th consecutive year of dividend growth, which makes MSI one of the best dividend stocks in the telecom sector. The stock supports a dividend yield of 0.96%, as of September 24.
6. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 70
American Tower Corporation (NYSE:AMT) is engaged in operating, acquiring, and developing communications real estate, including cell towers and data centers, both in the U.S. and abroad. Its primary business involves leasing space on these sites to wireless carriers and enterprises. The property operations segment has been the company’s main revenue driver, accounting for roughly 98% of total revenue in 2022, 2023, and 2024, supported by long-term contracts with built-in rent increases and strong renewal rates.
Lately, American Tower Corporation (NYSE:AMT) has focused its strategy on several key areas: strengthening and expanding property operations, refining its international portfolio, enabling the adoption of new technologies such as 5G and AI infrastructure, practicing disciplined capital allocation, and carefully managing regulatory challenges. Its long-term success relies on growing recurring revenue, improving site utilization, maintaining solid margins, and directing capital toward higher-return opportunities while keeping leverage under control.
American Tower Corporation (NYSE:AMT) is one of the best dividend stocks in the telecom sector, as the company has increased its payouts for 13 consecutive years. The company currently offers a quarterly dividend of $1.70 per share and has a dividend yield of 3.52%, as of September 24.
5. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ), a leading US wireless and broadband provider, has drawn renewed attention from income-focused investors following another dividend increase and a steady outlook for 2025. Shares have been trading in the mid-$40 range, pushing the dividend yield above 6% after the board’s early September hike. What stands out isn’t just the higher payout but the stronger cash flow supporting it, which points to its sustainability.
At the end of July, Verizon Communications Inc. (NYSE:VZ) posted stronger-than-expected second-quarter results and raised its full-year guidance. This gave investors more confidence in the company’s ability to balance growth investments with shareholder returns.
Verizon Communications Inc. (NYSE:VZ) has been growing its dividends for 19 consecutive years, which makes it one of the best dividend stocks to invest in. The company offers a quarterly dividend of $0.69 per share and has a dividend yield of 6.39%, as of September 24.
4. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 76
T-Mobile US, Inc. (NASDAQ:TMUS) ranks as the second-largest wireless provider in the US by subscriber count, serving nearly 133 million customers as of the second quarter of 2025. That figure grew by more than 4 million in August 2025 following its $4.3 billion acquisition of UScellular.
While most of T-Mobile US, Inc. (NASDAQ:TMUS)’s revenue comes from postpaid and prepaid wireless plans, the company also provides home internet and even online banking services. To strengthen its home internet offering, it finalized the purchase of fiber-to-the-home provider Lumos earlier this year. The company has rapidly put its spectrum to use, creating the largest 5G network in the US with coverage that surpasses its main rivals. Looking ahead, the company is positioned to draw customers through the strength of its brand and quality of service, rather than depending on aggressive promotions as it did in the past. This shift is reflected in recent financial results, where average revenue per user has risen significantly compared to levels earlier in the decade.
T-Mobile US, Inc. (NASDAQ:TMUS) started its dividend policy in 2023 with a per-share dividend of $0.65 every quarter. It currently offers a quarterly dividend of $1.02 per share, after announcing a 16% hike in September this year. As of September 24, the stock has a dividend yield of 1.71%.
3. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 81
Cisco Systems, Inc. (NASDAQ:CSCO) is a leading provider of networking, security, software, and cloud solutions, best known for its Internet Protocol-based routers and switches that enable data to move across networks. The stock has surged by nearly 14% since the start of 2025.
Artificial intelligence has become a major growth driver for Cisco Systems, Inc. (NASDAQ:CSCO). In 2024, the company generated over $1 billion in AI-related revenue and is aiming to at least double that figure in 2025. A key part of this expansion was its $28 billion acquisition of Splunk, completed last year, which strengthens Cisco’s ability to support customers in enhancing their networking, security, and AI capabilities.
Cisco Systems, Inc. (NASDAQ:CSCO)’s dividend growth makes it an appealing option for income investors. The company’s dividend growth streak spans 18 years, and the company currently offers a quarterly dividend of $0.41 per share. The stock has a dividend yield of 2.44%, as recorded on September 24.
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) is an American multinational company that operates in mass media, telecommunications, and entertainment. The company has long dealt with the impact of cord-cutting on its cable TV business, and now its broadband segment, once considered stable, is also beginning to face pressure. This is significant since, in 2024, these two areas accounted for 64% of the company’s revenue and 83% of its adjusted EBITDA.
On the other hand, Comcast Corporation (NASDAQ:CMCSA)’s outlook is stronger as a content producer. Through NBC Universal, it holds a leading position in media networks, streaming platforms, and theme parks. The company is also active in returning value to shareholders. Alongside its dividend, which is near a historical high, it repurchased $8.6 billion worth of stock last year.
Comcast Corporation (NASDAQ:CMCSA) is popular among income investors because of its stable dividend history. The company has been rewarding shareholders with growing dividends for the past 21 consecutive years. Currently, it offers a quarterly dividend of $0.33 per share and has a dividend yield of 4.18%, as of September 24.
1. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) is one of the leading telecom companies in the US, offering wireless, broadband, and fiber internet services to both individuals and businesses. Its network combines 5G technology with a large fiber footprint to provide mobile and fixed connectivity.
AT&T Inc. (NYSE:T)’s strategy centers on expanding its 5G and fiber coverage to more areas while moving customers away from its older copper network to improve efficiency and cut costs. AT&T’s performance depends on attracting high-value customers with bundled plans, keeping its network reliable, and staying competitive in the crowded wireless and home internet markets. Regulatory changes and continued investments in areas like cybersecurity and data analytics are also key to driving innovation and supporting long-term growth.
AT&T Inc. (NYSE:T) is a solid dividend company. Though the company doesn’t hold any dividend growth streak, it has paid regular dividends to shareholders for years. It currently offers a quarterly dividend of $0.2775 per share and has a dividend yield of 3.92%, as of September 24.
While we acknowledge the potential of T to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than T and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 11 Best Bank Dividend Stocks to Buy and 12 Best Stocks to Buy Now for Passive Income
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
