10 Best Telecom Dividend Stocks To Buy for 2024

3. T-Mobile US, Inc. (NASDAQ:TMUS)

Number of Hedge Fund Holders: 66

T-Mobile US, Inc. (NASDAQ:TMUS) is a Washington-based wireless network operator. The stock has been a standout performer in the stock market this year, surging by nearly 35% in 2024 so far. It has become a sought-after telecom stock in recent years due to its focus on growth and its strategy of differentiating itself from competitors, positioning itself as the “un-carrier” brand. Unlike other telecom companies that prioritize stability and dividends, T-Mobile only started paying dividends last year, as its main emphasis has been on expansion.

T-Mobile US, Inc. (NASDAQ:TMUS) generated over $20.1 billion in revenues in the third quarter of 2024, which showed a 4.7% growth from the same period last year. The company reported impressive postpaid net account additions of 315,000, the highest in the industry, along with postpaid net customer additions of 1.6 million, also leading the sector. In addition, the company achieved 865,000 postpaid phone net customer additions, marking the best performance in the industry and the highest Q3 in a decade.

T-Mobile US, Inc. (NASDAQ:TMUS) reported an operating cash flow of $6.1 billion, which grew 16% on a YoY basis. The company’s free cash flow of $5.2 billion also showed a 29% growth from the prior year period. This cash position allowed the company to return $1.6 billion to shareholders through dividends and share repurchases during the quarter.

T-Mobile US, Inc. (NASDAQ:TMUS) initiated its dividend policy in 2023 with a per-share quarterly dividend of $0.65. In September this year, the company hiked its quarterly dividend by 35.4%, which takes its quarterly dividend to $0.88 per share. As of December 19, the stock offers a dividend yield of 1.61%.

As per Insider Monkey’s database of Q3 2024, 66 hedge funds held investments in T-Mobile US, Inc. (NASDAQ:TMUS), up from 64 in the previous quarter. The stakes owned by these hedge funds have a total value of $3.3 billion.