As an investor, it doesn't pay to follow the crowd.

In this series, though, we highlight a possible exception -- the collective wisdom of our CAPS community. Read the next section if you're unfamiliar with our methodology. Skip it if you want to go straight to the results.

Why this crowd is different
Jumping into a stock because your rich neighbor did, or because you heard about it from your friend's uncle who used to work on Wall Street, or because CNBC has been talking about it nonstop is a recipe for disaster.

If there's one thing I've learned as a stock analyst, it's that any stock can be gussied up to sound like a world-beater. If there's a second thing I've learned, it's that being a smart person doesn't make you a good investor.

In the hands of a smart person with good communication skills, the never-were and never-will-be stocks sound like tickets to instant fortune. The ancient Greek philosophers made the distinction between rhetoric and knowledge. The former is convincing; the latter is true.

That's why we factor in track record in our Motley Fool CAPS community. We invite everyone to give stocks an outperform (akin to a "buy" call) or underperform rating (akin to a "sell" call) in CAPS. We then use those opinions to calculate a rating for each stock -- from one to five stars (five being the best). But -- and this is a big distinction -- we give more weight to the opinions of folks whose picks have performed well in the past.

The most popular telecom dividend play
So, with that methodology as prelude, I present to you the top four- and five-star-rated telecom stocks that yield 2% or more and have garnered the most outperform ratings by CAPS members. I used a minimum market capitalization of $100 million and the proviso that it must be listed on a major U.S. exchange. Remember, stocks are rated on a five-star scale by our CAPS community, so four- and five-star stocks are consensus outperforms.

Company

 Market Capitalization (in millions)

P/E Ratio

Dividend Yield

CAPS Rating (out of 5)

Outperform Picks

Verizon (NYSE: VZ)

$89,800

116.4

6.3%

****

   4,053

China Mobile (NYSE: CHL)

$207,568

12.5

3.2%

*****

   3,477

Turkcell (NYSE: TKC)

$13,913

13.2

3.7%

*****

    863

Vodafone (Nasdaq: VOD)

$127,866

9.8

7%

****

    763

Windstream (NYSE: WIN)

$5,658

17

8.5%

****

    710

Telekom Indonesia (NYSE: TLK)

$19,851

36.2

5.7%

*****

    577

Telefonica (NYSE: TEF)

$104,348

12.8

5.7%

*****

    528

Source: Motley Fool CAPS. NM = not meaningful.

The numbers that pop out in this screen are the dividend yields. There are many mature, dominating players on this list. And they span the globe. In telecom, you have to think about the prospects in the next technology generations and future capital expenditures. Our CAPS community has given the most votes to Verizon and its 6.3% yield; China Mobile is the biggest vote-getter among the five-star stocks.

Which is your favorite telecom stock? Is it one of these or is it a more hidden gem? Make your thoughts known in CAPS by clicking here. Or just go there to do further research on one of these stocks.

Anand Chokkavelu doesn't own shares of any company mentioned. Turkcell and Telekom Indonesia are Motley Fool Global Gains recommendations. Turkcell and Telekom Indonesia are Motley Fool Income Investor recommendations. The Fool owns shares of China Mobile, Telefonica, and Telekom Indonesia. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.