In terms of dividends, telecommunication stocks are among the most promising companies. Thanks to their cutting-edge technological innovations, the world is becoming a global village. There is an ever increasing demand for data services provided by telecommunication companies. According to the Telecommunications Industry Association the telecom market is expected to grow by at least 9% for the next few years.
We screened for highly profitable North American Telecoms with substantial dividends and a maximum P/E ratio of 20. All of the following companies listed have a minimum 4% dividend yield. While there are several telecom companies listed in NYSE, only the following telecoms fit into this criteria:
Bell Canada Enterprises (NYSE:BCE): BCE is Canada's largest communications company, providing the most comprehensive and innovative communication services to Canadian customers. The company offers local and long distance services, Bell Mobility and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, and IP-broadband services. The market capital of BCE is $26.87 billion, and current P/E ratio 15.14. Last year’s dividend yield was 5.68%.
Consolidated Communications Holdings (NASDAQ:CNSL): Consolidated Communications is a group of companies providing advanced communications services to both residential and business customers in Illinois, Texas and Pennsylvania. Consolidated Communications also offers a wide range of data services over its high-tech IP-based network, including local and long-distance telephone, Digital Phone, High-Speed Internet access and Digital TV. The market capital of CNSL is $538.06 million, and current P/E ratio is 16.59. With a dividend yield of 8.50%, Consolidated is a superb stock for dividend lovers.
Century Link (NYSE:CTL): Century Link is a southern telecommunication firm, headquartered in Monroe, Louisiana. The company operates as a local exchange carrier and Internet service provider, and is the fourth-largest local exchange carrier in the U.S. in terms of lines served. Century Link is also a reseller of long-distance service. The market capital of CTL is $12.50 billion, and current P/E ratio is 13.07. With a dividend yield of 7.08%, Century is an excellent candidate for the ultimate retirement portfolio.
Windstream Corporation (NASDAQ:WIN): Windstream Communications provides high-speed broadband Internet, phone service and Digital TV packages. The company’s costumer portfolio includes residential customers as well as small, medium and large businesses and government agencies. The market capital of Windstream is $6.53 billion, and P/E ratio is 19.61. Last year’s dividend yield was 7.76%.
AT&T, Inc. (NYSE:T): AT&T is the largest provider of fixed telephony in the United States, also provides broadband and subscription television services. AT&T is the largest provider of mobile telephony service in the United States, with over 95.5 million wireless customers. Current market cap is $166.35 billion, and P/E ratio is 8.74. Last year’s dividend yield was 5.6%. AT&T sports a low beta of 0.66. Market’s response to the acquisition of T-Mobile was minimal. However, in the long-run the merger will certainly affect the profitability of AT&T in a positive way.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.