The 3 Best Dividend-Paying Telecom Stocks to Buy Now
Investing in telecom stocks can be a great way to support your portfolio, as it offers stability and guarantees that investments are safe. Their customer relationships make the best telecom stocks stand out, giving them an edge over their competitors in the market. Additionally, these companies tend to have high dividend payment rates, giving investors the best of both worlds regarding growth potential and security.
The telecom industry is undergoing tremendous change with the onset of 5G technology. This has far-reaching implications for the telecom sector, enabling tremendous possibilities in industries such as healthcare and transport. Moreover, according to a recent report from Bloomberg, the global 5G services market should grow by a spectacular 52% by 2030. Having said that, let’s look at three of the best dividend-paying telecom stocks to invest in now.
| Ticker | Company | Price |
| T | AT&T | $19.47 |
| BCE | BCE | $45.77 |
| VZ | Verizon | $41.95 |
AT&T (T)
- Dividend Yield: 5.8%
AT&T (NYSE:T) is an absolute juggernaut in the telecom industry. As one of the largest companies in the sector, it provides various multiple services ranging from wireless to broadband and television. Moreover, it boasts an abundance of cash flow that allows them to maintain a healthy dividend policy. The company has been increasing dividends and payouts over 38 consecutive years, a remarkable feat and a testament to AT&T’s stability and dedication to providing better returns for its investors.
AT&T has had a remarkable showing in the stock market this past year. Despite not being the reigning favorite among investors, they’ve outperformed an already impressive rate relative to the broader market. As a result of its strong financial health, 2023 is looking even better for its shareholders. With AT&T’s sterling reputation for stability, this seems like an excellent time for investors to move into this high-quality stock that has proven so rewarding in the last 12 months.
BCE (BCE)
- Dividend Yield: 3.26%
BCE (NYSE:BCE) is Canada’s leading communications firm and has revolutionized the industry with its advanced broadband networks and services. It offers various solutions to customers, businesses, and government agencies. This includes 4G LTE, 5G, 5G+, Fiber Internet, and TV – in other words, BCE ensures everyone has access to the digital world. From aiding government operations to connecting homes across Canada. BCE is an integral part of Canadian life. It offers cutting-edge solutions and, more importantly, functions as a bridge connecting people with one another no matter where they are located.
BCE boasts a tremendous margin profile that continues to grow at a rapid pace each year. Moreover, its robust EBITDA and gross profit margins have risen over 35% and 42% over the past five years. Also, the year-over-year profitability, cash flows, and common equity expansion has improved by double-digit margins. Additionally, BCE stock trades at over a 15% discount to its 5-year average. Therefore, it is among the top dividend-paying telecom stocks to buy this year.
Verizon (VZ)
- Dividend Yield: 6.30%
Verizon (NYSE:VZ) has the ideal combination of a solid existing business and ambitious plans for the future. With profits down by nearly a quarter from last year, Verizon’s stock prices have plummeted. However, this presents an opportunity for investors to turn Verizon into a great value stock. Top-line growth and new ventures into broadband and other communications technologies appear promising due to government initiatives geared towards strengthening internet infrastructure across the country. Reinvesting in this large-cap tech leader can yield long-term rewards for investors looking for a value play with strong upside potential in the current market environment.
Investing in this company offers the chance to reap short- and long-term rewards, especially when considering the enticing dividend yield of 6.3%. It is poised to experience tremendous growth, securing its place as a leading telecommunications company. What’s more, for almost two decades, it has granted consistent dividend increases, which points to its commitment to rewarding its shareholders. Thus, VZ is among the best dividend-paying telecom stocks to buy.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
