Why Iridium Communications (IRDM) Could Be a Valuable Addition to a Telecom Dividend Portfolio

Iridium Communications Inc. (NASDAQ:IRDM) is included among the 11 Best Telecom Dividend Stocks to Buy for 2025.

Why Iridium Communications (IRDM) Could Be a Valuable Addition to a Telecom Dividend Portfolio

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.

While we acknowledge the potential of IRDM as an investment, 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 IRDM and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.