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Analysts set price targets based on revenue growth and stock appreciation expectations. Price targets can be set as the result of an upgrade or downgrade and can help retail investors get an idea of where investment firms expect the respective equity to trade at. These price targets are fair value estimates and have no guarantees associated with them. We found 7 telecom dividend stocks that have a dividend yield of 3% or more and have price targets that are at least 3% higher than the stock's current price.

Mobile Telesystems OJSC (MBT)

Mobile Telesystems has an average price target of $22.85 and was recently trading at $18.24, which is 20% lower than the average price target. MBT has a dividend yield of 5.7%, which is just below its 5-year yield average of 5.9%. The company pays an annual dividend and has increased its dividend for just one year. MBT has a payout ratio of 71%.

Frontier Communications (FTR)

Frontier Communications has an average price target of $5.15 and was recently trading at $4.12, which is 20% lower than the average price target. FTR has a dividend yield of 9.7% and a payout ratio of 37%. The company cut its dividend in 2010 and had to cut its dividend again this year.

Vodafone Group PLC (VOD)

Vodafone has an average price target of $32.39 and was recently trading at $26.95, which is 17% lower than the average price target. VOD has a dividend yield of 3.5% and a payout ratio of 45%. Vodafone pays dividends twice a year and has a 5-year dividend growth rate of 50.7%.

CenturyLink Inc (CTL)

CenteryLink has an average price target of $43.5 and was recently trading at $38.09 which is 12% lower than the average price target. CTL has a dividend yield of 7.6% and a payout ratio of 36%. The company pays dividends quarterly and after a few years of consecutive dividend increases it did not increase the dividend in 2011. So far 2012 is on the same track of maintaining a annual dividend of $2.90.

Verizon Communications (VZ)

Verizon has an average price target of $39.55 and was recently trading at $37.26, which is 6% lower than the average price target. Verizon has a dividend yield of 5.4% and a payout ratio over 100%. The company has increased its dividend for seven consecutive years and has a 5-year dividend growth rate of 4.1%.

TELUS Corp (TU)

TELUS Corp has an average price target of $59.71 and was recently trading at $56.92, which is 5% lower than the average price target. TU has a dividend yield of 4.3% and a payout ratio of 67%. TU has increased its dividend for seven consecutive years and has a 5-year dividend growth rate of 11%.

AT&T Inc (T)

AT&T has an average price target of $31.71 and was recently trading at $30.54, which is 4% lower than the average price target. AT&T has a dividend yield of 5.8% and a payout ratio over 100%. The company has increased its dividend for seven consecutive years and has a 5-year dividend growth rate of 4.8%.

Source: 7 Telecom Dividend Stocks With Growth Potential