5 Best Telecom Dividend Stocks To Buy for 2023

In this article, we discuss 5 best telecom dividend stocks to buy for 2023. If you want to read our detailed analysis of the telecom sector and its future outlook, go directly to read 10 Best Telecom Dividend Stocks To Buy for 2023. 

5. Iridium Communications Inc. (NASDAQ:IRDM)

Number of Hedge Fund Holders: 30

Iridium Communications Inc. (NASDAQ:IRDM) is a Virginia-based satellite communications company that provides access to voice and data services anywhere on Earth. Since the start of 2023, the stock delivered a 12.6% return to shareholders and its 12-month return came in at 46.7%, as of April 12.

In the fourth quarter of 2022, Iridium Communications Inc. (NASDAQ:IRDM) reported revenue of $193.8 million, which showed a 24.4% growth from the same period last year. The company’s cash position remained strong at the end of the quarter as it had over $168.8 million available in cash and cash equivalents.

Iridium Communications Inc. (NASDAQ:IRDM) currently pays a quarterly dividend of $0.13 per share and has a dividend yield of 0.87%, as of April 12. Though the company initiated its dividend policy in December 2022, its strong cash position signals sustainable dividends in the future. The company is among the best dividend stocks on our list.

In January, BWS Financial raised its price target on Iridium Communications Inc. (NASDAQ:IRDM) to $75 and maintained a Buy rating on the shares. The firm mentioned that the company’s revenue and adjusted EBITDA are expected to grow faster when its smartphones are commercially available.

At the end of Q4 2022, 30 hedge funds in Insider Monkey’s database owned stakes in Iridium Communications Inc. (NASDAQ:IRDM), up from 25 in the previous quarter. These stakes have a consolidated value of over $460.2 million.

Baron Funds mentioned Iridium Communications Inc. (NASDAQ:IRDM) in its Q4 2022 investor letter. Here is what the firm has to say:

“Iridium Communications Inc. (NASDAQ:IRDM), a leading mobile voice and data communications services vendor offering global coverage via satellite, increased 15.8% and added 58 bps to performance in the quarter. It increased 24.2% for the year and helped performance by 106 bps. The stock outperformed as the company’s revenue growth accelerated, leading to strong profitability and cash flow, which the company used to buy back its stock. The company continues to benefit from its $3 billion investment in its satellite constellation, which is a technologically and capital-intensive effort and a strong barrier to entry. Iridium continues to generate consistent and growing revenue and cash flow, which should lead to a return of capital to shareholders for at least the next 10 years. That is since its satellites last longer than its competitors’ satellites, and they offer stronger broadband given its low-earth orbit positioning.

Shares of Iridium Communications Inc., a leading mobile voice and data communications services vendor offering global satellite coverage, rose after announcing its first cash dividend as part of its shareholder return program. Expectations for smartphone compatibility remained robust, with record quarterly results showing double-digit growth in commercial service revenue and solid profitability. Initiatives including aircraft tracking system Aireon and enterprise broadband service Certus are maturing. Lastly, Iridium won a $324 million contract from the Space Development Agency.”

4. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 55

AT&T Inc. (NYSE:T) is an American multinational telecommunication holding company and is one of the best dividend stocks on our list. The company offers a quarterly dividend of $0.2775 per share and has a dividend yield of 5.56%, as of April 12.

AT&T Inc. (NYSE:T) delivered a 6.5% return to shareholders year-to-date and its 12-month return came in at 2.15%, as of the close of April 12.

As of the close of Q4 2022, 55 hedge funds in Insider Monkey’s database reported having stakes in AT&T Inc. (NYSE:T), down from 61 in the previous quarter. The collective value of these stakes is over $1.56 billion.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”

3. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 56

A New York-based telecommunications company, Verizon Communications Inc. (NYSE:VZ) is next on our list of the best dividend stocks from the telecom sector. The company has raised its dividends for 16 years straight and currently pays a quarterly dividend of $0.6525 per share. The stock’s dividend yield on April 12 came in at 6.64%.

BofA gave a positive outlook on Verizon Communications Inc. (NYSE:VZ)’s core business and dividends. Given this, the firm maintained a Neutral rating on the stock with a $41 price target in March.

At the end of Q4 2022, 56 hedge funds in Insider Monkey’s database owned stakes in Verizon Communications Inc. (NYSE:VZ). These stakes have a total value of over $1.5 billion.

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.”

2. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 61

American Tower Corporation (NYSE:AMT) is an American real estate investment trust company that operates and owns wireless and broadcast communications infrastructure around the world. On March 9, the company declared a quarterly dividend of $1.56 per share, which fell in line with its previous dividend. It has been raising its dividends consistently for the past 11 years, which places it as one of the best dividend stocks on our list from the telecom sector. The stock has a dividend yield of 2.96%, as of April 12.

As of the end of Q4 2022, 61 hedge funds tracked by Insider Monkey reported having stakes in American Tower Corporation (NYSE:AMT), worth nearly $3.4 billion collectively.

ClearBridge Investments mentioned American Tower Corporation (NYSE:AMT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Real estate and communication services sectors generated positive returns but lagged others within the Russell 1000 Value Index. The Strategy benefited from its underweight in the real estate sector with American Tower Corporation (NYSE:AMT) as its only holding. REITs are generally perceived to be interest rate sensitive, which negatively impacted American Tower’s recent stock performance. However, we remain confident in the company’s highly durable and predictable business model, which is supported by long-term customer contracts and insatiable wireless data growth.”

1. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 72

Comcast Corporation (NASDAQ:CMCSA) tops our list of the best dividend stocks. The telecommunications company announced a 7.4% hike in its quarterly dividend to $0.29 per share on January 26. Through this increase, the company took its dividend growth streak to 15 years. As of April 12, the stock has a dividend yield of 3.05%.

Comcast Corporation (NASDAQ:CMCSA) was a part of 72 hedge fund portfolios in Q4 2022, down from 73 in the previous quarter, as per Insider Monkey’s data. The stakes owned by these hedge funds have a total value of roughly $3.67 billion.

ClearBridge Investments mentioned Comcast Corporation (NASDAQ:CMCSA) in its Q4 2022 investor letter. Here is what the firm has to say:

“That balance served the Strategy well throughout the year, enabling outperformance against the benchmark in all four quarters. Results in the last three months were driven by a long-time media position in Comcast Corporation (NASDAQ:CMCSA), which we consider a durable compounder due to its consistent revenue growth and free cash flow generation. Comcast shares saw a snapback after a difficult first half of the year caused by cord cutting in its cable business and slowing subscriber growth in its broadband business. A flexible balance sheet and strong cash generation enabled the company to repurchase shares during the selloff earlier in the year.”

You can also take a look at 12 Best Covid Treatment Stocks to Buy Today and 10 Best Edge Computing Stocks to Buy Now

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