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We are more likely to beat the market by following the smartest investors rather than by trading against them. Based on the transactions of over 300 hedge funds, we listed the top 10, high dividend, telecom stocks favored by hedge fund managers. We believe high dividend stocks provide some downside and inflation protection and these stocks will outperform long-term Treasuries over the next 10 years.

Below, we compiled a list of 10 large-cap telecom stocks with high dividend yields. The market data are sourced from Fidelity. These stocks have market capitalizations above $4 billion and annualized dividend yields of at least 5%.

Company Name

Symbol

Dividend Yield

No. Hedge Funds

VODAFONE GROUP PLC

VOD

5.5

35

VERIZON

VZ

5.6

29

AT&T INC

T

6.1

25

CENTURYLINK INC

CTL

8.6

23

FRONTIER COMM

FTR

10.8

14

SK TELECOM CO LTD

SKM

6.1

13

BCE INC.

BCE

5.4

11

WINDSTREAM CORP

WIN

7.9

10

KT CORP

KT

6.3

9

CHUNGHWA TELECOM CO LTD

CHT

5.5

9

Vodafone Group Plc (NASDAQ:VOD): Vodafone is a mobile communications company operating across the globe providing a range of communications services. VOD has a 5.5% dividend yield and is held by 35 hedge funds. VOD has a market cap of $133.59B and P/E ratio of 10.87. Boykin Curry holds the largest VOD position among the funds we are tracking (see Curry’s favorite stocks here).

Verizon Communications (NYSE:VZ): Verizon is a provider of communications services. Its products and services include voice, Internet access, broadband video and data, Internet protocol network services, long distance, and wireless voice and data services. VZ has a 5.6% dividend yield and is held by 29 hedge funds. VZ has a market cap of $100.7B and P/E ratio of 15.9. Phill Gross and Robert Atchinson hold the largest VZ position.

AT&T Inc (NYSE:T): AT&T is a provider of telecommunications services in the United States and worldwide. Its products and services include wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, managed networking, wholesale services and directory advertising and publishing. T has a 6.1% dividend yield and is held by 25 hedge funds. T has a market cap of $166.28B and P/E ratio of 8.49. Phill Gross and Robert Atchinson hold the largest T position.

Centurylink Inc (NYSE:CTL): Centurylink is an integrated communications company. It is engaged primarily in providing a range of communications services, including voice, Internet, data and video services. CTL has an 8.6% dividend yield and is held by 23 hedge funds. CTL has a market cap of $20.87B and P/E ratio of 14.35. Phill Gross and Robert Atchinson also hold the largest CTL position (see their favorite stocks here).

Frontier Communications Corp (NASDAQ:FTR): Frontier is a communications company providing services predominantly to rural areas and small and medium-sized towns and cities. FTR has a 10.8% dividend yield and is held by 14 hedge funds. FTR has a market cap of $6.97B and P/E ratio of 43.78. Bernard Horn’s Polaris Capital has a large FTR position.

SK Telecom Co Ltd (NYSE:SKM): SK Telecom is a Korea-based wireless telecommunications services provider. Its services include wireless Internet services, game portal services, multimedia services, wired and wireless integrated multimedia services, and ubiquitous and convergence services. SKM has a 6.1% dividend yield and is held by 13 hedge funds. SKM has a market cap of $11.27B and P/E ratio of 7.13. Sandy Nairn holds the largest SKM position.

BCE Inc (NYSE:BCE): BCE is a Canadian communications company. It provides wire line voice and wireless communications services, internet access, data services and video services to residential, business and wholesale customers. BCE has a 5.4% dividend yield and is held by 11 hedge funds. BCE has a market cap of $30.64B and P/E ratio of 16.7. Louis Navellier holds the largest BCE position (see Navellier’s favorite stocks here).

Windstream Corp (NASDAQ:WIN): Windstream Corporation is a communications and technology solutions provider, specializing in complex data, high-speed Internet access, and voice and transport services. WIN has a 7.9% dividend yield and is held by 10 hedge funds. WIN has a market cap of $6.48B and P/E ratio of 23.05. Jim Simons holds the largest WIN position.

KT Corp (NYSE:KT): KT is a Korean-based company engaged in the provision of integrated telecommunications services. KT has a 6.3% dividend yield and is held by 9 hedge funds. KT has a market cap of $9.17B and P/E ratio of 11.15. Robert Karr holds the largest KT position.

Chunghwa Telecom Co Ltd (NYSE:CHT): Chunghwa is a telecommunications service provider based in Taiwan. It has five segments: domestic fixed communications business, mobile communications business, Internet business, international fixed communications business and others. CHT has a 5.5% dividend yield and is held by 9 hedge funds. CHT has a market cap of $26.71B and P/E ratio of 17.43. Jim Simons holds the largest CHT position.

Disclosure: I am long VOD, CTL, T, FTR.

Source: 10 High Dividend Telecom Stocks Hedge Funds Love