5 Best Telecom Dividend Stocks to Buy for 2022

3. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of October 18: 7.02%

Another best dividend stock from the telecom sector is Verizon Communications Inc. (NYSE:VZ), which provides wireless and broadband services to its consumers. Of the 895 elite funds tracked by Insider Monkey, 58 hedge funds had investments in the company in Q2 2022, compared with 69 in the previous quarter. These investments are collectively valued at nearly $2.3 billion.

On September 6, Verizon Communications Inc. (NYSE:VZ) announced a 2% growth in its dividend, which takes its quarterly dividend to $0.6525 per share. This was the company’s 16th consecutive year of dividend growth. As of October 18, the stock’s dividend yield came in at 7.02%.

In October, Oppenheimer upgraded Verizon Communications Inc. (NYSE:VZ) to Outperform with a $50 price target, appreciating the growth in the company’s customer base. The firm also mentioned that VZ should see a 15% per year growth in its free cash flow.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”