The 25 Highest Yielding Telecoms

It seems as though interest rates are going to be staying quite low, at least for the foreseeable future, which means investors should get used to paltry returns from treasuries and their favorite FDIC-insured savings accounts.

In order to battle those low yields, investors have one great investing advantage working in their favor: dividend yields look extraordinarily high right now. In addition, it seems like dividends are coming back in vogue, as their potential for growth as well as income are enticing investors back to the table.

In order to help you in your quest for high returns, I've ran a screen for telecom companies that trade on U.S. exchanges, that have a market cap of at least $300 million, and that pay a solid dividend. Below are the highest 25 yielders, in rank order:

Company

Dividend Yield

Market Cap (billions)

Cellcom Israel (NYSE: CEL  )

13.3%

$2.84

Partner Communications (Nasdaq: PTNR  )

12.7%

$2.63

Tele Norte Leste Participacoes (NYSE: TNE  )

12.5%

$5.36

Telecomunicacoes de Sao Paulo (NYSE: TSP  )

12.3%

$10.40

Telecom of New Zealand (NYSE: NZT  )

11.6%

$2.76

Magyar Telekom (NYSE: MTA  )

11%

$3.14

Frontier Communications (NYSE: FTR  )

9.6%

$7.58

AlaskaCommunication Systems (Nasdaq: ALSK  )

9.4%

$0.40

Consolidated Communications (Nasdaq: CNSL  )

9.1%

$0.50

Philippine Long Distance (NYSE: PHI  )

8.9%

$10.11

Windstream (NYSE: WIN  )

8.7%

$5.49

FranceTelecom (NYSE: FTE  )

8.6%

$54.88

Hellenic Telecommunications (NYSE: OTE  )

8.2%

$3.84

CenturyLink (NYSE: CTL  )

8%

$10.92

Telefonica (NYSE: TEF  )

7.9%

$102.26

Portugal Telecom (NYSE: PT  )

6.7%

$9.61

NTELOS Holdings (Nasdaq: NTLS  )

6.6%

$0.69

Verizon Communications (NYSE: VZ  )

6.3%

$83.56

AT&T (NYSE: T  )

6.2%

$156.88

Chunghwa Telecom (NYSE: CHT  )

5.7%

$19.43

BCE, Inc. (NYSE: BCE  )

5.7%

$23.24

Qwest Communications (NYSE: Q  )

5.6%

$9.81

Vodafone (NYSE: VOD  )

5.4%

$124.39

City Telecom HK (Nasdaq: CTEL  )

5.3%

$0.42

Telefonos de Mexico (NYSE: TMX  )

5.2%

$13.68

Source: Capital IQ, a division of Standard & Poor's.

While these stocks are a great place to start your research, don't forget to do your own due diligence. Dividends are a fantastic investment, but they can also be dangerous -- remember to check out payout ratios and the debt profile of each company to help ensure whatever investment you make will pan out over the long-run.

Interested in the most popular dividend stock around? Click here to check it out!

Jordan DiPietro owns shares of Telefonica. Cellcom Israel is a Motley Fool Global Gains pick. France Telecom, Philippine Long Distance Telephone, and Partner Communications are Motley Fool Income Investor selections. The Fool owns shares of Telefonica. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (19)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 16, 2010, at 10:20 AM, joenobody101 wrote:

    Where is Deutsch Telecom DTEGY.pk , i.e T-Mobile ? It pays 7.7%.

    Another thing to worry about is the insane highway robbery 10% haircut of your dividend by the crooks who sponsor the ADR.

  • Report this Comment On August 20, 2010, at 5:59 PM, Latinus wrote:

    "ADR Management Fee" $0.0085 per NZT share

    For the June div'd, it works out as 4.21%,

    fortunately much less than Joe's 10%.

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