The 25 Highest-Yielding Telecom Stocks

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Dividend investing is popular again. Investors have taken to heart Jeremy Siegel's studies, which show that higher-yielding stocks tend to offer greater returns over time than low- or no-yield stocks.

The highest dividend yields can be very tantalizing. As long as a stock yielding 15% doesn't lose value, you'll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business, and driven down its stock price.

Dividends are not guaranteed; you need to make sure that a business is generating enough cash to pay its dividend, or your investment could be disastrous.

I ran a screen for the highest-yielding telecom stocks. The only limitations I set are that I'm only considering telecoms, and they must have a market cap greater than $1 billion.

Here are the top 25 highest-yielding telecoms the screen produced:


Company Name

Market Cap (millions)

Dividend Yield

1 Tele Norte Leste Participacoes S.A. (NYSE: TNE  ) $6,099


2 Partner Communications (Nasdaq: PTNR  ) $2,874


3 Cellcom Israel (NYSE: CEL  ) $3,052


4 Philippine Long Distance Telephone (NYSE: PHI  ) $9,424


5 Frontier Communications (NYSE: FTR  ) $8,468


6 France Telecom (NYSE: FTE  ) $59,028


7 Windstream (Nasdaq: WIN  ) $6,153


8 Portugal Telecom (NYSE: PT  ) $9,927


9 Telefonica (NYSE: TEF  ) $112,161


10 CenturyLink (NYSE: CTL  ) $12,145


11 VimpelCom (NYSE: VIP  ) $17,729


12 Telecom Corp. of New Zealand (NYSE: NZT  ) $3,029


13 AT&T (NYSE: T  ) $165,685


14 KT (NYSE: KT  ) $8,625


15 Chunghwa Telecom (NYSE: CHT  ) $23,049


16 Mobile Telesystems (NYSE: MBT  ) $17,817


17 BCE (NYSE: BCE  ) $26,920


18 Verizon Communications (NYSE: VZ  ) $100,268


19 Telecomunicacoes de Sao Paulo (NYSE: TSP  ) $12,159


20 SK Telecom (NYSE: SKM  ) $10,426


21 Qwest Communications (NYSE: Q  ) $11,651


22 Telecom Italia (NYSE: TI  ) $26,352


23 Vodafone Group (NYSE: VOD  ) $147,736


24 Telefonos de Mexico (NYSE: TMX  ) $16,180


25 TELUS (NYSE: TU  ) $15,349


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

These stocks are a good place to start your research, but they're not formal recommendations. Remember, their seemingly irresistible yields could be ticking time bombs, so do your own due diligence. Also, make sure you diversify your picks across various sectors. As investors relearn every decade or so, you never want to put all your eggs in one basket -- no matter how tempting the dividends are.

For a basket of some high-yield some dividend opportunities, click here to get The Motley Fool's five-page free report: 13 High-Yielding Stocks to Buy Today.

Dan Dzombak's musings and articles he finds interesting can be found on his Twitter account: @DanDzombak. He owns shares of Frontier Communications, France Telecom, and Vodafone Group.

Cellcom Israel is a Motley Fool Global Gains recommendation. France Telecom, Philippine Long Distance Telephone, and Partner Communications are Motley Fool Income Investor picks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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