A New Global Telecom Dividends Index

|
Includes: ABE, CHA, CHL, CHU, DCM, DTEGY, IXP, IYZ, ORAN, T, TEF, TTH, VOD, VOX, VZ
by: Mike Havrilla

Click to enlarge

In addition to the previously mentioned dividend investing opportunities in tobacco stocks, the accompanying table includes the 10 largest companies by market cap among 74 total included in the ETF Innovators [ETFI] Global Telecom Services Dividend Index, which is comprised of companies with market caps over $1B U.S. Dollars and dividend yields of at least 2%.

Both the Top 35 Rated and all 74 companies outpaced benchmark telecom funds in the past year, including Telecom HOLDRs (NYSEARCA:TTH), iShares Dow Jones U.S. Telecom (NYSEARCA:IYZ), Vanguard Telecom Services (NYSEARCA:VOX), iShares S&P Global Telecom (NYSEARCA:IXP), and the Emerging Market Telecom Fund (ETF).

The 10 largest companies by market include China Mobile (NYSE:CHL), AT&T (NYSE:T), Telefonica (NYSE:TEF), Vodafone (NASDAQ:VOD), Verizon (NYSE:VZ), NTT DoCoMo (NYSE:DCM), France Telecom (FTE), Deutsche Telekom (DT), China Unicom (NYSE:CHU), and China Telecom (NYSE:CHA). The Top 10 companies by market cap have an average dividend yield of 5.2%, compared to an average yield of 8.5% for the Top 35 Rated and 7.8% for all 74 companies in the index.