In this article, we highlight 10 top telecom dividend stocks that investors may consider for 2024. The telecommunications industry in the US continues to be a significant player in driving innovation and economic growth. With the evolution of technology, telecom companies are not just offering traditional voice and data services but also paving the way for advancements like 5G networks, IoT applications, and cloud computing, which are transforming various sectors. According to a report by the Cellular Telecommunications Industry Association (CTIA), the wireless sector in the US contributed $475 billion annually to the economy and supported 4.7 million jobs. The US wireless industry accounted for 2.6% of the country’s GDP in 2016, making it comparable to the 24th largest global economy.
Looking ahead to 2024, Deloitte predicts that consumers in the US will have a wider array of broadband connectivity options. The adoption of wireless solutions for internet needs is on the rise, with a significant increase in fixed wireless connections powered by 5G technology. The growth of 5G Fixed Wireless Access (FWA) is expected to continue dominating the broadband internet market through 2024.
While the telecom sector did not see significant growth in 2023, there is optimism for the industry in 2024. Despite a slight decline in the S&P Telecom Select Industry Index, companies like Warner Bros. Discovery, Inc. and Comcast Corporation outperformed the S&P 500. As the sector faces challenges like the resolution of strikes and changes in advertising spending, companies are taking strategic measures to enhance their financial positions and address debt concerns.
In addition to potential growth opportunities, telecom stocks are known for their dividend offerings. Many companies in the sector have a history of distributing regular dividends, reflecting their commitment to shareholder value. In this article, we delve into some of the best dividend stocks in the telecom industry for investors to consider.
Our methodology involved analyzing data from 933 hedge funds as of Q4 2023 to identify telecom sector stocks that pay dividends and have strong investor interest. We selected 10 stocks with the highest number of hedge fund investors and ranked them based on hedge funds’ sentiment towards them. Hedge funds’ consensus stock picks have historically outperformed the S&P 500 Index by a significant margin over the last decade.
Among the top telecom dividend stocks for 2024 are companies like Cogent Communications Holdings, Inc., BCE Inc., TELUS Corporation, Telephone and Data Systems, Inc., and Iridium Communications Inc. These companies have a track record of dividend growth and strong cash positions to sustain their dividend payments in the future.
Investors looking to capitalize on dividend opportunities in the telecom sector can explore these top stocks for potential returns in 2024.