In this article, we will take a look at some of the best dividend stocks from the telecom sector.
The telecommunications sector plays a vital role in the United States, attracting considerable interest from investors due to its steady focus on innovation and rapid technological advancements. Beyond offering standard voice and data services, telecom firms drive progress by introducing innovations such as 5G technology, Internet of Things (IoT) solutions, and cloud computing, which support digital transformation across multiple industries. Investor interest in the sector is evident from estimates showing that from 1985 to 2020, wireless network operators invested over $600 billion in capital expenditures, according to a report by the Cellular Telecommunications Industry Association (CTIA). This figure excludes the more than $120 billion paid to the federal government for spectrum rights, which are essential for powering networks and meeting consumer demand for wireless services.
The CTIA report also mentioned that the significant spending on spectrum and infrastructure over the past decade has enabled the wireless industry to provide services to hundreds of millions of consumers across the US. This has resulted in nearly $9.5 trillion in gross output, $5.4 trillion in GDP, and an average of over 3 million jobs annually. In 2020 alone, the industry generated more than $1.3 trillion in gross output, $825 billion in GDP, and supported close to 4.5 million jobs in the U.S. economy.
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As 2025 draws near, the telecommunications industry is evolving rapidly, driven by a mix of challenges and opportunities that will influence its future path. Rapid technological advancements, rising consumer demand for faster and higher-quality internet, and ongoing shifts in the business landscape contribute to the sector’s dynamic nature. Analysts suggested that while predicting the future always carries uncertainties, it is clear that groundbreaking technologies, particularly artificial intelligence, will play a transformative role in the telecommunications industry. Simultaneously, societal factors such as the climate crisis, demographic changes, and geopolitical challenges will compel operators to innovate and adapt at a faster pace to stay competitive. Jelena Trivan, CEO of Mtel, also discussed artificial intelligence during an interview with Bloomberg. Here are some of her comments:
“In telecommunications future, AI will play an important role in the industry transformation. It will enable a more efficient data processing, network optimization, and improvement of the customer experience. Customer support automation, through chatbots and virtual assistants, will reduce waiting time and increase customer experience. Also, AI will help in predicting and resolving network problems before they reach critical level, by which the reliability of the services will be increased. With introduction of modern communication tools, we will provide for personalized offers for the customers, customized to their needs and habits, and our business processes will become even faster and more efficient.”
Telecom stocks have been delivering impressive returns this year, driven by the sector’s significant economic contribution and promising outlook. In 2024, the telecom industry has outperformed the broader market. The Telecom Select Industry Index, which measures the performance of stocks within the market’s Total Market Index in sub-industries such as Alternative Carriers, Communications Equipment, Integrated Telecom Services, and Wireless Telecom Services, has gained over 33% year-to-date, surpassing the market’s 24% return.
Alongside their impressive returns, telecom stocks are recognized for providing reliable dividend income. Janus Henderson’s annual dividend report revealed that these stocks distributed $73.7 billion in dividends in 2023, growing from $73.2 billion in 2022. In this article, we will take a look at some of the best dividend stocks from the telecom sector.
Photo by Mario Caruso on Unsplash
Our Methodology:
For this list, we scanned Insider Monkey’s database of 900 hedge funds as of Q3 2024 and selected stocks that belong to the telecom sector or provide services in the industry and pay dividends to shareholders. From the resultant list, we picked 10 stocks with the highest number of hedge fund investors and ranked them in ascending order of hedge funds’ sentiment towards them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. TELUS Corporation (NYSE:TU)
Number of Hedge Fund Holders: 16
TELUS Corporation (NYSE:TU) is a Canadian IT company that offers television, data, and internet services to its consumers. Over the past two years, higher interest rates have increased borrowing costs. Communications companies such as Telus have spent billions expanding and upgrading their wireless and wireline networks, often using debt to finance part of these projects. The higher interest expenses have lowered profits and reduced the cash available for distributions or debt repayment. Telus has also encountered difficulties in the operations of both its subsidiaries. Since the start of 2024, the stock is down by over 17%.
Despite facing challenges, TELUS Corporation (NYSE:TU) reported strong earnings in the third quarter of 2024. The company reported revenue of $3.66 billion, up slightly by 0.02% from the same period last year. The revenue also beat analysts’ estimates by $13.6 million. The company’s results highlighted its capacity to achieve sustainable and profitable growth, driven by a strategic focus on margin-enhancing customer expansion, world-class broadband networks, and a customer-focused culture. This approach led to industry-leading total customer net additions of 347,000, including impressive gains in mobile phone customers with 130,000 additions, significant growth in connected devices with 159,000 net additions, and a total of 58,000 net additions in fixed services.
On November 8, TELUS Corporation (NYSE:TU) declared a 3.4% hike in its quarterly dividend to C$0.4023 per share. This was the company’s 27th consecutive year of dividend growth, which makes TU one of the best dividend stocks in the telecom sector. The company also remained committed to its shareholder obligation, returning over $21 billion to investors through dividends since 2004. The stock also offers an attractive dividend yield of 8.14%, as of December 19.
At the end of Q3 2024, 16 hedge funds tracked by Insider Monkey held stakes in TELUS Corporation (NYSE:TU), compared with 17 in the previous quarter. These stakes have a total value of $154.7 million. With over 3 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.
9. Ubiquiti Inc. (NYSE:UI)
Number of Hedge Fund Holders: 18
Ubiquiti Inc. (NYSE:UI) is an American tech company that manufactures and sells wireless data communication and wired products for businesses and homes. The company faced shortages during the pandemic and responded by taking on variable-rate debt after the supply constraints of 2021 and 2022 to purchase more inventory. However, as interest rates increased in 2022, its interest expenses rose significantly. This strategy may have been flawed, as revenue growth slowed, and the company has had to write off some inventory in recent quarters.
That said, Ubiquiti Inc. (NYSE:UI) is generating strong returns this year surging by over 142% since the start of 2024. The company also reported solid earnings in fiscal Q1 2025. During the quarter, its revenues totaled $550.3 million, reflecting an 8.5% increase from the previous quarter and an 18.8% rise compared to the same period last year. The revenue growth from the prior quarter was primarily driven by higher earnings from both the Enterprise Technology platform and the Service Provider Technology platform. The company is also recognized for its significant investment in research and development (R&D), aiming to drive continuous innovation. In the most recent quarter, its R&D expenses amounted to $38 million.
Bonsai Partners also appreciated Ubiquiti Inc. (NYSE:UI) in its Q2 2024 investor letter. Here is what the firm has to say:
“Ubiquiti Inc. (NYSE:UI) (see our write-up below) also built its business model on top of operational float. Like Costco, Ubiquiti’s products are outliers in terms of the attributes its customers care most about, and as a result, Ubiquiti’s customers and partners defray many of the company’s operating costs, resulting in industry-leading returns on capital.
“Operational float” is valuable because it does not look like “time-based float” yet offers similar benefits. Because this concept is not yet widely recognized, investors retain more value when they identify it. We intend to exploit this idea as long as it remains outside consensus thinking.
You’ve likely noticed by now that we’re fascinated by things that don’t behave as expected. Following our curiosity has been an excellent filter for where we spend our time because we either learn something new or get lucky and stumble upon a new investment idea.
As far as businesses go, Ubiquiti presented itself as a complex web of contradictions. However, as we peeled back the onion, we learned that its contradictions were the source of its competitive advantage. Allow me to share a few of these puzzle pieces:..” (Click here to read the full text)
Ubiquiti Inc. (NYSE:UI) initiated its dividend policy in 2018 and has paid regular dividends to shareholders since then. Currently, it offers a quarterly dividend of $0.60 per share and has a dividend yield of 0.72%, as of December 19.
As of the close of Q3 2024, 18 hedge funds in Insider Monkey’s database held stakes in Ubiquiti Inc. (NYSE:UI), compared with 19 in the preceding quarter. The consolidated value of these stakes is nearly $164 million.
8. Iridium Communications Inc. (NASDAQ:IRDM)
Number of Hedge Fund Holders: 35
Iridium Communications Inc. (NASDAQ:IRDM) is a Virginia-based mobile phone operator company. It operates in the satellite communications industry, providing critical connectivity through its satellite network, which leverages weather-resistant L-band frequencies. The company has attracted investor interest due to its solid market presence, promising growth prospects, and recent shareholder-focused initiatives. The satellite market is expanding rapidly, fueled by the rise of the AI era and geopolitical tensions, which have heightened the need for real-time data, autonomous systems, and national defense solutions. Iridium’s offerings are well-positioned to address these changing demands.
In the third quarter of 2024, Iridium Communications Inc. (NASDAQ:IRDM) reported revenue of $212.7 million, up from $197.6 million in the same period last year. The revenue growth was driven by higher commercial service revenue and government engineering revenue. The company closed the quarter with a total of 2,482,000 billable subscribers, an increase from 2,236,000 in the same period last year and up from 2,413,000 at the end of the previous quarter on June 30, 2024. This represents an 11% year-over-year growth in billable subscribers, driven primarily by expansion in the commercial IoT segment.
Iridium Communications Inc. (NASDAQ:IRDM), one of the best dividend stocks, currently offers a quarterly dividend of $0.35 per share. The company started paying dividends in 2022 and has returned approximately $1 billion through dividends and share repurchases since then. The stock’s dividend yield on December 19 came in at 1.89%.
The number of hedge funds tracked by Insider Monkey owning stakes in Iridium Communications Inc. (NASDAQ:IRDM) grew to 35 in Q3 2024, from 30 in the previous quarter. The collective value of these stakes is over $442.5 million. Among these hedge funds, Silver Heights Capital Management was the company’s leading stakeholder in Q3.
7. Motorola Solutions, Inc. (NYSE:MSI)
Number of Hedge Fund Holders: 48
Motorola Solutions, Inc. (NYSE:MSI) ranks seventh on our list of the best telecom dividend stocks. The American technology, communications, and security company plays a pivotal role in the communications industry, focusing on mission-critical communications and analytics. The company provides integrated technologies and services across segments such as LMR, Video Security and Access Control, and Command Center software. Its primary aim is to seamlessly integrate these solutions into unified ecosystems that enhance safety and security. In addition, the company’s ongoing investment in research and development highlights its dedication to improving product interoperability and delivering innovations that cater to a wide range of customers, including those in government and commercial sectors. the stock has surged by nearly 49% in 2024 so far.
Wedgewood Partners made the following comment about MSI in its Q3 2024 investor letter:
“Motorola Solutions, Inc. (NYSE:MSI) was another top contributor to performance as the Company continued its steady execution with +9% year-over-year sales growth and +22% adjusted earnings per share growth. While Motorola’s backlog for products declined, much of it was due to accelerated revenue recognition on strong deliveries for its Land Mobile Radio” (LMR) business – a critical long-term solution for emergency services around the globe. The technology behind LMR is quite simple; however, it is an extremely robust implementation that needs to withstand regular and even mega catastrophes (e.g., hurricanes) in order to guarantee uptime for the emergency services that depend on it for communications. The Company has superlative, unmatched competitive positioning in this core business and should be able to continue to expand value-added service offerings to LMR and drive attractive long-term growth.” (Click here to read the full text)
Motorola Solutions, Inc. (NYSE:MSI) reported strong earnings in the third quarter of 2024. The company posted revenue of $2.79 billion, up over 9.15% from the same period last year. Sales in the Products and Systems Integration segment increased by 11%, while the Software and Services segment saw a 7% rise. Excluding sales to the UK Home Office, growth in the Software and Services segment reached 13%.
In addition, Motorola Solutions, Inc. (NYSE:MSI)’s cash position also remained stable during the quarter. The company’s operating cash flow of $759 million showed growth from $714 million in the prior-year period. Its free cash flow came in at $702 million, up from $649 million in the year-ago quarter. The company also returned $164 million to shareholders through dividends. This strong cash position allowed the company to increase its payouts for 13 consecutive years. Currently, it offers a quarterly dividend of $0.98 per share for a dividend yield of 0.94%, as recorded on December 19.
Insider Monkey’s database of Q3 2024 indicated that 48 hedge funds held stakes in Motorola Solutions, Inc. (NYSE:MSI), growing from 42 in the previous quarter. The total value of these stakes is more than $1.3 billion. Among these hedge funds, Orbis Investment Management was the company’s leading stakeholder in Q3.
6. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is one of the largest companies in the telecom sector. The company offers services in communications, technology, information, and entertainment. In 2023, the company faced challenges in its consumer business, gaining wireless subscribers at a slower pace than its peers. Its smaller consumer wireline segment, which offers broadband services, also experienced stagnation, largely due to a competitive promotional landscape. In addition, macroeconomic pressures hindered the growth of its business wireless and wireline divisions as companies scaled back spending on telecom upgrades. However, during the first nine months of 2024, Verizon’s consumer revenue increased by 0.9% year over year, while business revenue declined by 2.1%, resulting in overall revenue growth of 0.3%. The recovery in the consumer segment was driven by localized incentives and marketing, and the completion of its strategic plans, which also includes its latest acquisitions.
Third Point Management also highlighted the company’s acquisition in its Q3 2024 investor letter. Here is what the firm said:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
In the third quarter of 2024, Verizon Communications Inc. (NYSE:VZ) posted revenue of $33.3 billion, showing a slight decline of 0.1% compared to the same period the previous year. Wireless revenue rose to $19.8 billion, representing a 2.7% increase year-over-year. Moreover, the company recorded 389,000 net broadband additions, continuing its streak of over 375,000 net additions for the ninth consecutive quarter.
Verizon Communications Inc. (NYSE:VZ) boasts a robust cash position, solidifying its reputation as a dependable dividend payer. During the first nine months of the year, the company generated $26.5 billion in operating cash flow and reported a free cash flow of $14.5 billion. With 18 consecutive years of dividend growth, Verizon has demonstrated its commitment to rewarding shareholders. On December 5, the company announced a quarterly dividend of $0.6775 per share, unchanged from the previous payout. The stock supports a dividend yield of 6.78%, as of December 19.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 57 funds held stakes in Verizon Communications Inc. (NYSE:VZ), compared with 67 in the previous quarter. These stakes have a consolidated value of more than $3.2 billion.
5. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 59
AT&T Inc. (NYSE:T) is a Texas-based telecommunications company that offers a wide range of related services and products to its consumers. In 2022, the company refocused its priorities by merging its WarnerMedia division with Discovery, moving away from media to concentrate on strengthening its telecom operations. Under CEO John Stankey, who took the helm in 2020, the company has made notable progress in restructuring and reducing long-term debt, positioning itself for sustainable growth.
A cornerstone of AT&T Inc.’s (NYSE:T) strategy is its significant investment in digital infrastructure, particularly its mid-band 5G network, which now reaches over 210 million people. This commitment to advanced technology enhances its competitive position and boosts service reliability. Furthermore, the company has been addressing social issues by working to close the digital divide and offering affordable broadband services to underserved communities.
In the third quarter of 2024, AT&T Inc. (NYSE:T) posted revenue of $30.2 billion, which fell slightly by 0.5% from the same period last year. Despite challenges such as severe weather and a workforce stoppage in the Southeast, the company achieved its 19th consecutive quarter of adding over 200,000 new AT&T Fiber customers. It continues to expand its largest business segment, Mobility, and anticipates leading the industry in postpaid phone churn for the 13th time in the last 15 quarters. The company remains committed to top-tier industry investments, debt reduction, and year-to-date growth in free cash flow.
AT&T Inc. (NYSE:T) also demonstrated a strong cash position in its recent quarterly earnings. The company’s operating cash flow came in at $10.2 billion and its free cash flow amounted to $5.1 billion. Its quarterly dividend comes in at $0.2775 per share for a dividend yield of 4.92%, as recorded on December 19.
AT&T Inc. (NYSE:T) was included in 59 hedge fund portfolios at the end of Q3 2024, down from 71 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these funds stands at over $5.6 billion.
4. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 60
Cisco Systems, Inc. (NASDAQ:CSCO) ranks fourth on our list of the best dividend stocks in the telecom sector. The California-based digital communications technology company reported revenue of $13.8 billion in fiscal Q1 2025, marking a 6% decrease from the previous year. However, this figure exceeded analysts’ expectations by $70.5 million. The company’s net income for the quarter was $2.7 billion. In addition to strong financial results, it completed acquisitions of DeepFactor, Inc., a private firm specializing in cloud-native application security, and Robust Intelligence, Inc., a private company providing AI security solutions. The stock has surged by over 14% since the start of 2024.
In its latest quarterly earnings report, Cisco Systems, Inc. (NASDAQ:CSCO) highlighted that its customers are prioritizing investments in essential infrastructure to support AI development. The company emphasized that its diverse portfolio positions it uniquely to capitalize on this trend. Its revenue, gross margin, and earnings per share all surpassed expectations, reaching the higher end or exceeding the provided guidance range, demonstrating strong operating leverage.
Cisco Systems, Inc. (NASDAQ:CSCO) has a strong balance sheet with ample cash to support its dividend payments. In fiscal Q1 2025, the company reported an operating cash flow of $3.7 billion, which showed a 54% growth from the same period last year. It ended the quarter with $18.7 billion available in cash and cash equivalents. The company remained committed to its shareholder return, paying $1.6 billion to investors through dividends. Currently, it offers a quarterly dividend of $0.40 per share and has a dividend yield of 2.78%, as of December 19. Cisco Systems, Inc. (NASDAQ:CSCO) has been rewarding shareholders with growing dividends for the past 17 years.
According to Insider Monkey’s database of Q3 2024, 60 hedge funds held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), down from 61 in the preceding quarter. These stakes have a collective value of more than $3 billion. With over 11.7 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.
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.
2. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 72
Comcast Corporation (NASDAQ:CMCSA) is an American multinational telecommunications company. It reported revenue of $32.07 billion for the third quarter of 2024, showing a 7% increase compared to the same period last year. The company showed strong performance, with broadband average revenue per user (ARPU) rising by 3.6% and a 5% increase in its connectivity segment. Adjusted EBITDA margins for the Connectivity & Platforms division reached 40.9%. Moreover, Comcast successfully hosted the Paris Summer Olympics, driving significant growth in Peacock’s revenue and subscriber base, while solidifying NBC’s position as the top network for the 2023-2024 season.
Despite demonstrating solid earnings, Comcast Corporation (NASDAQ:CMCSA) is down by over 14% since the start of 2024. The company’s performance has been underwhelming, with investors showing little interest in investing this year. Its earnings failed to engage investors, who saw them as a short-term improvement rather than a sign of sustainable long-term growth.
That said, from a dividend perspective, Comcast Corporation (NASDAQ:CMCSA) maintained a strong cash position. In the latest quarter, the company generated over $7 billion in operating cash flow, with free cash flow exceeding $3.4 billion. In addition, it returned $1.2 billion to shareholders through dividends. The company is one of the best dividend stocks in the telecom sector as it has been raising its dividends for 16 consecutive years. It currently pays a quarterly dividend of $0.31 per share and has a dividend yield of 3.31%, as of December 19.
Comcast Corporation (NASDAQ:CMCSA) was popular among elite funds at the end of Q3 2024, with hedge fund positions growing to 72, from 61 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds are worth over $5.44 billion in total.
1. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 73
American Tower Corporation (NYSE:AMT) is an American real estate investment trust company that specializes in wireless and broadcast communications infrastructure in several countries. For Q3 2024, the company reported revenue of $2.52 billion, marking a 10.5% decline compared to the same period last year. During the quarter, a significant move for the company was the sale of its underperforming tower operations in India to Brookfield Infrastructure. This deal allowed Brookfield to strengthen its position in the Indian market, increasing its tower portfolio from 175,000 to 253,000 towers and expanding its customer base. Brookfield acquired these assets at an attractive price, as American Tower had faced profitability challenges with the portfolio due to tenant-related issues.
The difficulties faced by American Tower Corporation (NYSE:AMT) are overshadowing the strong and steady demand for communications and data infrastructure. However, as these challenges are expected to ease, the REIT has the potential for substantial growth starting in 2025 and continuing thereafter.
That said, Mar Vista Investment Partners, LLC highlighted the strengths of American Tower Corporation (NYSE:AMT)’s business in its Q3 2024 investor letter:
“American Tower Corporation’s (NYSE:AMT) stock rebounded nearly 20% during the third quarter, helped by the tailwind of lower interest rates. The stock has now appreciated more than one-third since U.S. 10-Yr Treasury interest rates peaked in late April 2024. As a levered REIT, lower rates benefit AMT’s equity value through a lower cost of debt and a higher value for its long-duration cash flows. Fundamental expectations did not change materially during the quarter as the company modestly increased their growth expectations for the year. The long-term global opportunities for 5G deployment, edge-of-network computing, and datacenters, remain attractive and are not fully reflected in the current stock price, in our opinion.”
American Tower Corporation (NYSE:AMT) currently pays a quarterly dividend of $1.62 per share. While the company has not increased its dividend this year, it has consistently raised payouts at an average annual rate of 20% since 2013. The company has achieved substantial growth by expanding its data infrastructure portfolio to keep pace with the increasing demand for data. Despite facing challenges in 2024, American Tower expects a rebound starting in 2025, which will position the company to resume its dividend hikes. This outlook makes it an attractive option for investors seeking both steady income and significant growth potential. The stock has a dividend yield of 3.62%, as of December 19.
At the end of Q3 2024, American Tower Corporation (NYSE:AMT) was a favored stock among top hedge funds, with the number of hedge fund positions rising to 73, up from 63 in the previous quarter, according to Insider Monkey’s database. The total value of these holdings exceeds $3.7 billion.
Overall, American Tower Corporation (NYSE:AMT) ranks first on our list of the best dividend stocks in the telecom sector. While we acknowledge the potential for AMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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