It's not every day I'm willing to take a look at a telecom company. It's an industry with pretty poor dynamics, and the antics of Qwest (NYSE:Q) and Global Crossing (NASDAQ:GBLCE) certainly don't help matters. But, like everyone, I have my moments of weakness.

Last week, while running one of my favorite screens for value and income, I came across a telecom that pays a hefty dividend and for a number of reasons struck me as unique. You might say I've even had a bit of a change of heart.

Before delving into some of the unique aspects of Taiwan's Chunghwa Telecom (NYSE:CHT), I should note that many consider an investment in Taiwan, China, or anywhere outside of the U.S. to be taking on undue risk. To a certain extent I can understand this view, because securities regulations outside of the U.S. can be quite different and do require at least some investment of time to understand. That said, I think folks who read Chunghwa's Securities and Exchange Commission filings and compare them with, say, Nortel's (NYSE:NT) will find Chunghwa's filings rather refreshing.

If you're already inclined to research Chunghwa further, you should know up front that the company's largest and controlling shareholder is the Ministry of Transportation & Communications (MOTC). In other words, Chunghwa is majority-owned by the state. To a certain extent, this limits Chunghwa's ability to react quickly in a competitive environment, but given the recent history of the telecom industry, this is not necessarily a bad thing.

In addition, the company bylaws preclude issuing additional shares. Let me say that again just to make sure nobody misses it. Chunghwa is not allowed to dilute your ownership. Hallelujah!

Now, before you send me email about how I'm just another anti-stock-option monger, understand that I'm not against stock options in theory. I'm just not thrilled with how they're accounted for. Investors in Cisco (NASDAQ:CSCO), Qualcomm (NASDAQ:QCOM), and others take note. There's a telecom investment out there that has you waking up in the morning owning the same percentage of the company as you did the day before.

Still, there is one thing about Chunghwa that I like even more than the lack of dilution. It's the requirement that above and beyond certain requirements -- such as legal reserves and debt repayment -- the company must return excess capital to shareholders. Hence a beefy dividend yield that exceeds 7% at today's prices. Income investors will no doubt find that intriguing.

With year-over-year revenue growth of just 2%, it's not likely that Chunghwa will be turning up in David Gardner's high-growth Motley Fool Rule Breakers. However, Chunghwa is doing a great job transitioning away from land lines and long distance service (cash cows) and toward growth areas such as wireless and data. All things considered, I'm hard-pressed to find a more attractive opportunity in the world of telecom.

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Fool contributor Nathan Parmelee owns shares of Qualcomm but none of the other companies mentioned.