Communications Services sector.
Morningstar defines the Communications Services sector as "Companies that provide communication services using fixed-line networks or those that provide wireless access and services. This sector also includes companies that provide internet services such as access, navigation and internet related software and services."
While there are some high-yielding stocks in this sector, not all fall in that category. About half the companies have very high yields, while the other half have low yields. Some are more heavily tied to the declining "land-line" industry, while others are aggressively growing their wireless business.
More than any other sector, the astute investor looking for Communications Services dividend stocks has to spend significant time understanding each company. Where it is positioned? What is its strategic plan? How will it implement its plan?
This week, I screened my Dividend Growth Stocks database for Communications Services companies with a yield above 2.0%. The results are presented below:
Telephone and Data Systems Inc. (TDS)
Yield: 2.1% | Years of Dividend Growth: 37
Telephone and Data Systems Inc. provides wireline service in rural markets and is the majority owner of regional wireless carrier U.S. Cellular.
Atlantic Tele-Network (ATNI)
Yield: 2.5% | Years of Dividend Growth: 16
Atlantic Tele-Network provides wireless and wireline telecommunications services in the Caribbean and North America.
Verizon Communications Inc. (VZ)
Yield: 4.6% | Years of Dividend Growth: 8
Verizon Communications Inc. offers wireline, wireless and broadband services primarily in the northeastern United States. It acquired MCI in 2006 and has since sold or spun off non-core assets. Alltel was acquired in early 2009.
AT&T Inc. (T)
Yield: 4.8% | Years of Dividend Growth: 29
AT&T Inc. (formerly SBC Communications) provides telephone and broadband service and holds full ownership of AT&T Mobility (formerly Cingular Wireless). AT&T Corp. was acquired in late 2005 and BellSouth in late 2006.
As with past screens, the data presented above is in its raw form. Some of the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.
My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 220+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.
Full Disclosure: Long T, CTL in my dividend growth portfolio, and VZ in my high-yield portfolio. See a list of all my dividend growth holdings here.
- Best Stocks for 2012
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
- A Roadmap To Build Wealth With Dividend Stocks
- The Good, The Bad and The Ugly of Dividend Stocks
Tags: [TDS] [ATNI] [VZ] [T]
Popular Posts - Last 7 days
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Every investor wants to earn more. It is how we define "more" and how we go about earning it that defines the type of investor we ...
In every field there are winners and there are champions. The difference is subtle, but very real. A champion is driven for success and will...
In 1993, State Street Global Advisors launched the first exchange-traded fund (ETF). Now there are literally hundreds of ETFs out there cove...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Each Sunday I highlight any notable articles that I came across over the past week, along with any Carnivals I participated in. For those re...
In the U.S. and Canada, most companies pay dividends quarterly . In other parts of the world, it is not uncommon for companies to pay an ann...
Linked here is a detailed quantitative analysis of 3M Company (MMM). Below are some highlights from the above linked analysis: Company De...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
Linked here is a detailed quantitative analysis of Verizon Communications Inc. (VZ). Below are some highlights from the above linked analys...