Top 10 Telecom Stocks to Invest in for Dividends in 2023

The telecommunications industry in the United States is an essential economic driver, as it facilitates communication between households, companies, and government agencies. Many businesses operate in this industry, from telecommunications firms to cable and satellite TV providers to ISPs. Broadband, 5G, and cloud-based service rollouts have accelerated thanks to the sector’s ever-shifting fashions. This bodes well for the industry’s potential for future expansion. According to a recent analysis, the worldwide telecom market is expected to rise at a CAGR of 6% from $2.8 trillion in 2022 to $3.04 trillion in 2023. The analysis estimates that the value of the worldwide telecom industry will increase to $3.81 trillion by 2027, expanding at a CAGR of 5.8% between 2018 and 2027.

Innovations in technology are a significant factor in the telecom sector’s dynamic nature. The introduction of cutting-edge innovations like fifth-generation (5G) wireless, the Internet of Things (IoT), and artificial intelligence (AI) is changing the way people communicate and opening up new markets for telecom businesses. More and more 5G standalone (SA) networks are being built out worldwide as telecom providers and hardware manufacturers attempt to increase the capabilities of 5G networks. According to Deloitte, the number of companies investing in 5G SA rose from 52 in the third quarter of 2020 to 111 in the first quarter of 2022. The survey also stated that by the end of 2023, at least 200 operators would have invested in 5G SA. Readers interested in learning more about the future of the telecom industry may check out “11 Best Telecom Stocks To Buy.”

The telecom industry is beginning to recognize the importance of artificial intelligence (AI). It has several potential uses in business, including customer support, marketing, and network administration. In addition, the semiconductor industry, which is crucial to the growth and improvement of the telecom sector, is making extensive use of AI in various contexts. According to Deloitte’s estimates, major chip manufacturers would spend over $300 million on artificial intelligence technologies in 2023. In 2026, the sum is projected to hit $500 million.

Each company is ranked based on the number of hedge funds that have a position in the stock.

5. Iridium Communications Inc. (NASDAQ: IRDM)

Number of Hedge Fund Holders: 30

The Virginia-based Iridium Communications Inc. (NASDAQ: IRDM) operates a global network of satellites to transmit voice and data. As of April 12, the stock has returned 12.6% to investors since the beginning of 2023 and 46.7% in the preceding 12 months.

Iridium Communications Inc. (NASDAQ: IRDM) reported sales of $193.8 million in the fourth quarter of 2022, up 24.4% year over year. Over $168.8 million in cash and equivalents were available after the quarter, maintaining the company’s solid liquidity.

On April 12, Iridium Communications Inc. (NASDAQ: IRDM) had a dividend yield of 0.87% and was paying a quarterly dividend of $0.13 per share. The firm only started paying dividends in December 2022, but its healthy cash flow suggests it will be able to keep doing so in the years to come. We consider it one of the top dividend stocks available.

Iridium Communications Inc. (NASDAQ: IRDM) ‘s price target increased by BWS Financial in January to $75. The firm also reaffirmed its Buy recommendation for the stock. When the company’s cellphones are finally released to the public, revenue and adjusted EBITDA are projected to increase quicker, the company said.

The number of hedge funds holding shares of Iridium Communications Inc. (NASDAQ: IRDM) increased to 30 at the end of Q4 2022 from 25 at the end of the previous quarter. These holdings are collectively worth more than $460.2 million.

4. AT&T Inc. (NYSE: T)

Number of Hedge Fund Holders: 55

The American multinational telecommunications holding firm AT&T Inc. (NYSE: T) is one of the top dividend stocks we’ve seen. As of April 12, the company pays a dividend of $0.2775 per share quarterly, with a yield of 5.56%.

As of the closing of trading on April 12, AT&T Inc. (NYSE: T) had returned 6.5% to shareholders this year and 2.15% for the past 12 months.

At the conclusion of the third quarter of 2022, 61 hedge funds in Insider Monkey’s database held positions in AT&T Inc. (NYSE: T). By the end of the fourth quarter of 2022, that number had fallen to 55. More than $1.56 billion is presently the value of these holdings.

3. Verizon Communications Inc. (NYSE: VZ)

Number of Hedge Fund Holders: 56

(NYSE: VZ), a telecommunications company based in New York. The payment of dividends has climbed for the past 16 years running, and is now at $0.6525 per share quarterly. The dividend return for this stock is 6.64 percent as of April 12th.

BofA praised the dividends and core business of Verizon Communications Inc. (NYSE: VZ). This is why, in March, the brokerage kept its Neutral rating and $41 price target on the stock.

Verizon Communications Inc. (NYSE: VZ) was held by 56 hedge funds in Insider Monkey’s database at the end of Q4 2022. The combined worth of these holdings is almost $1.5 billion.

2. American Tower Corporation (NYSE: AMT)

Number of Hedge Fund Holders: 61

Global wireless and broadcast communications infrastructure is owned and operated by American Tower Corporation (NYSE: AMT), an American real estate investment trust. The dividend payment of $1.56 per share made on March 9 was in line with the company’s prior dividend payment. One of the top dividend stocks in the telecommunications industry, it has a record of dividend growth dating back 11 years. As of April 12, the dividend yield on this stock is 2.96%.

Nearly $3.4 billion was reportedly invested in American Tower Corporation (NYSE: AMT) by 61 different hedge funds by the end of the fourth quarter of 2022, according to data compiled by Insider Monkey.

1. Comcast Corporation (NASDAQ: CMCSA)

Number of Hedge Fund Holders: 72

When looking for reliable dividend stocks, we recommend Comcast Corporation (NASDAQ: CMCSA). On January 26, the telecoms firm announced a quarterly dividend increase, bringing the payout to $0.29 per share, a rise of 7.4 percent. The dividend increase extends the company’s streak of annual increases to 15 years. The dividend yield on this stock is 3.05% as of April 12.

According to Insider Monkey calculations, there were 72 hedge funds with Comcast Corporation (NASDAQ: CMCSA) positions at the end of Q4 2022, down from 73 at the end of the previous quarter. The combined value of these hedge funds’ holdings is about $3.67 billion.