11 Best Telecom Dividend Stocks to Buy for 2025

Core Insights - The telecom sector has shown an 11% gain in 2024, but it has underperformed compared to the broader market, with the S&P 500 increasing by approximately 25% and the NASDAQ by nearly 30% [1] Industry Overview - The telecom industry has experienced periods of significant revenue growth, initially driven by wireline services and later by mobile connectivity and broadband internet. Outside these high-growth phases, the sector is generally characterized by steady but slower revenue growth, typically in the single digits, with global average dividend yields around 4% [2] - Future expectations for telecom companies include a focus on cost reductions, careful capital spending management, monetizing past investments, and leveraging mergers and acquisitions to enhance value. Companies with a growth focus may seek to accelerate revenue beyond traditional connectivity services [3] Methodology for Stock Selection - The stock selection process involved scanning Insider Monkey's database of nearly 1,000 hedge funds as of Q2 2025, identifying telecom sector stocks that pay dividends, and ranking them based on the number of hedge fund investors [5] Company Highlights - TELUS Corporation (NYSE:TU): - Ranked among Canada's top telecom providers, TELUS benefits from a subscription-driven model that ensures consistent revenue. The company has a strong dividend growth record, having raised payouts for 21 consecutive years, currently offering a quarterly dividend of $0.4163 per share and a dividend yield of 7.66% as of September 24 [7][8] - TELUS is investing approximately $70 billion through 2029 to enhance its 5G and broadband networks, aiming to support customer growth and service quality [9] - The healthcare division, TELUS Health, is experiencing solid momentum due to strategic investments and innovative offerings [10] - Ubiquiti Inc. (NYSE:UI): - A networking technology firm that serves clients in over 75 countries, Ubiquiti employs a community-driven marketing strategy rather than a large direct sales team. The company has maintained a solid dividend policy since 2018, increasing its quarterly dividend by 33.3% to $0.80 per share in August, resulting in a dividend yield of 0.50% as of September 24 [11][13] - Iridium Communications Inc. (NASDAQ:IRDM): - Provides global satellite-based voice and data services through a network of 66 low Earth orbit satellites, focusing on government contracts and expanding into new areas like direct-to-device satellite connectivity. Iridium initiated its dividend policy in 2022, currently offering a quarterly dividend of $0.15 per share and a dividend yield of 3.44% as of September 24 [14][15][16]