In this article, we discuss 5 best telecom dividend stocks to buy for 2023. If you want to read our detailed analysis of the telecom sector and its future outlook, go directly to read 10 Best Telecom Dividend Stocks To Buy for 2023.
5. Iridium Communications Inc. (NASDAQ:IRDM)
Number of Hedge Fund Holders: 30
Iridium Communications Inc. (NASDAQ:IRDM) is a Virginia-based satellite communications company that provides access to voice and data services anywhere on Earth. Since the start of 2023, the stock delivered a 12.6% return to shareholders and its 12-month return came in at 46.7%, as of April 12.
In the fourth quarter of 2022, Iridium Communications Inc. (NASDAQ:IRDM) reported revenue of $193.8 million, which showed a 24.4% growth from the same period last year. The company’s cash position remained strong at the end of the quarter as it had over $168.8 million available in cash and cash equivalents.
Iridium Communications Inc. (NASDAQ:IRDM) currently pays a quarterly dividend of $0.13 per share and has a dividend yield of 0.87%, as of April 12. Though the company initiated its dividend policy in December 2022, its strong cash position signals sustainable dividends in the future. The company is among the best dividend stocks on our list.
In January, BWS Financial raised its price target on Iridium Communications Inc. (NASDAQ:IRDM) to $75 and maintained a Buy rating on the shares. The firm mentioned that the company’s revenue and adjusted EBITDA are expected to grow faster when its smartphones are commercially available.
At the end of Q4 2022, 30 hedge funds in Insider Monkey’s database owned stakes in Iridium Communications Inc. (NASDAQ:IRDM), up from 25 in the previous quarter. These stakes have a consolidated value of over $460.2 million.
Baron Funds mentioned Iridium Communications Inc. (NASDAQ:IRDM) in its Q4 2022 investor letter. Here is what the firm has to say:
“Iridium Communications Inc. (NASDAQ:IRDM), a leading mobile voice and data communications services vendor offering global coverage via satellite, increased 15.8% and added 58 bps to performance in the quarter. It increased 24.2% for the year and helped performance by 106 bps. The stock outperformed as the company’s revenue growth accelerated, leading to strong profitability and cash flow, which the company used to buy back its stock. The company continues to benefit from its $3 billion investment in its satellite constellation, which is a technologically and capital-intensive effort and a strong barrier to entry. Iridium continues to generate consistent and growing revenue and cash flow, which should lead to a return of capital to shareholders for at least the next 10 years. That is since its satellites last longer than its competitors’ satellites, and they offer stronger broadband given its low-earth orbit positioning.
Shares of Iridium Communications Inc., a leading mobile voice and data communications services vendor offering global satellite coverage, rose after announcing its first cash dividend as part of its shareholder return program. Expectations for smartphone compatibility remained robust, with record quarterly results showing double-digit growth in commercial service revenue and solid profitability. Initiatives including aircraft tracking system Aireon and enterprise broadband service Certus are maturing. Lastly, Iridium won a $324 million contract from the Space Development Agency.”
