Introduction
According to the World Economic Forum, the Telecommunications sector is the
vanguard of digital transformation; this statement is quite evident in light of the
world's rapid developments. The COVID-19 pandemic has highlighted the
significance of telecommunications in meeting the high demands for connectivity.
It did not only resume businesses and government activities, but it also kept
individuals connected globally, making social distancing more bearable.
What's next for Telecommunication Industry?
After enduring more than two years during the pandemic, 2022 is seen as a year of
recovery for the telecom industry, with new technological advancement on the
horizon. One anticipated trend is the 5G or the 5th generation mobile network,
which is expected to transport data up to 100 times faster than 4G. Operators have
already recognized the immense weight that 5G core may provide to the B2B
market, and they are still working their way to push it to the B2C market. Another
trend this 2022 is the next generation of Wi-Fi called Wi-Fi 6; it is predicted to play
a significant role in the future of wireless connection, similar to 5G. Based on
Deloitte's 2021 global advanced wireless survey, 45% of organizations are now
implementing and testing the 5G and Wi-Fi 6 for their advanced wireless
undertakings. These two, moreover, are seen as catalysts for emerging smart cities,
improved utility grid and waste management, ecological water and energy control,
new health and wealth technologies, and 5G-powered IoT.
Why Invest in Telecommunication Industry?
Regardless of the reality that the Covid-19 Pandemic is likely to disappear,
immediately denying its existence is somehow disadvantageous to the investors.
Remember that online learning, remote employment, and online shopping are all
driven by the use of telecommunication. These new-normal practices are still being
done worldwide, particularly in developing nations struggling to cope with the
Pandemic. Another reason to invest in the Telecom industry is the emerging trends
mentioned above. As the number of home gadgets (IoT) rises, routers are beginning
to bottleneck due to outdated technologies, and the presence of the 5G network
and Wi-Fi 6 will undoubtedly solve these difficulties.
Even though individual stocks can be highly volatile, the telecom sector as a whole
has exhibited continuous long-term growth. Some of the biggest
telecommunication companies in the world are Comcast Corporation
(NASDAQ:CMCSA), Chunghwa Telecom Co., Ltd. (NYSE:CHT), TELUS Corporation
(NYSE: TU), Verizon Communications Inc. (NYSE: VZ), and Cogent Communications
Holdings, Inc. (NASDAQ:CCOI). According to a recent market forecast published by
The Business Research Company, the telecommunications sector is set up to
increase at a compound annual growth rate (CAGR) of roughly 6%, reaching $3,450
billion by 2022. In addition, wired telecommunications providers are also a
potential market with global revenues anticipated to reach $338.8 billion by 2022.
In light of this, we've compiled a list of the ten best telecom dividend stocks to buy
for 2022.
10 Best Telecom Dividend Stocks To Buy for 2022
10. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield: 2.00%
Number of Hedge Fund Holders: 75
Comcast Corporation (NASDAQ:CMCSA) is a media and technology firm founded in
1912, and every year it attracts hundreds of thousands of new internet members.
Along with Sky and NBC Universal, Xfinity is one of Comcast's core businesses and
is among the leading companies in the United States, providing tv entertainment
and phone services. As of January 20, 2022, Comcast Corporation
(NASDAQ:CMCSA) has an intraday market cap of 221.36B; and based on its income
statement, it earned a total of $113,757,000 in revenue during the last 12 months.
On top of that, Comcast Corporation (NASDAQ:CMCSA) will collaborate with Team
Gleason on a project to fundamentally redesign TV control, improving the quality
of life of individuals with physical and verbal disabilities, including people with ALS.
This project is no wonder a game-changer in the realm of telecommunications
because of its social initiative to better the lives of the disabled.
9. Chunghwa Telecom Co., Ltd. (NYSE:CHT)
Dividend Yield: 3.71%
Number of Hedge Fund Holders: 6
Chunghwa Telecom Co., Ltd. (NYSE:CHT) is a Taiwan-based telecommunications
service delivering domestic and international fixed communication, mobile
communication, internet service, and broadband. The company has even taken
part in Corporate Social Responsibility programs and has garnered awards in recent
years. Today, Chunghwa Telecom Co., Ltd. (NYSE:CHT) has daytime market cap of
33.147B and total revenue of $7,621,856.03 in the past 12 consecutive months.
In the coming years, Chunghwa Telecom Co., Ltd. (NYSE:CHT) is planned to be the
top supporting partner for Viettel-CHT Co.,Ltd. Both companies have already signed
a deal to begin working together to assist local businesses in executing digital
solutions like IoT, AI, Big Data, Cloud-Network Convergence, and Cyber Security.
This effort is being made in an attempt to accelerate the already occurring digital
revolution on the Vietnamese market.
8. TELUS Corporation (NYSE: TU)
Dividend Yield: 4.38%
Number of Hedge Fund Holders: 12
TELUS Corporation (NYSE: TU) is one of the world's most extensive communication
and technology companies. Last year, the company was unsurprisingly included in
the Forbes list of World's Best Employers 2021 and Canada's Best Employers 2021.
TELUS Corporation's (NYSE: TU) market capitalization has increased by 2.28%
percent, from $31.61 billion last year to $32.40 billion in January 2022. On the other
hand, its revenue for the fiscal quarter ending September 30, 2021, is $3.373B,
representing a 13.44% climb year-over-year.
Last January 14, 2022, Telus' 5G network was said to reach 70% of the Canadian
population. President and CEO of TELUS Corporation’s (NYSE: TU), Darren Entwistle
said that they are more committed than ever to connecting their citizen across
Canada and making them more productive and healthy. The company, in addition,
is ranked 8th on our list of 10 best telecom dividend stocks to buy in 2022.
7. Verizon Communications Inc. (NYSE: VZ)
Dividend Yield: 4.72%
Number of Hedge Fund Holders: 57
Through creative communications and technology solutions, Verizon
Communications Inc. (NYSE: VZ) alters how people, businesses, and objects engage
with one another. In terms of profitability, Verizon's cash flow typically surpasses
its dividend payout, allowing it to keep its dividend yield competitive. As of January
2022, Verizon Communications Inc. (NYSE: VZ) has a market cap of $225.16 Billion,
a 1.14% increase from its previous data, and because its income is recurrent in
nature, Verizon is unlikely to face a significant decline in cash flow very soon. Based
on its income statement, Verizon Communications Inc. (NYSE: VZ) has reached a
total revenue of $134,238,000 for the past 12 months.
In late 2020 and early 2021, the Federal Communications Commission held an
auction for the C-band spectrum. Verizon, which competed as Cellco Partnership,
spent the most money paying $45 billion for 3,511 spectrum licenses. On January
19, 2022, it was announced that Verizon's 5G promise is starting to gain traction.
6. Cogent Communications Holdings, Inc. (NASDAQ:CCOI)
Dividend Yield: 4.80%
Number of Hedge Fund Holders: 20
Cogent Communications Holdings, Inc. (NASDAQ:CCOI) operates a facility-based
network serving 50 countries in six continents: North America, South America,
Europe, Africa, Australia, and Asia. It is intended to be the top optical Internet
service provider focusing on supplying ultra-high-speed Internet access and transit
services in the next generation. Two months before 2022, it was reported that its
service revenues grew by 0.03% from Q2 2021 to Q3 2021.
The continued impact of the COVID-19 Pandemic, including the transmission of
variant strains, limited the operations of Cogent Communications Holdings, Inc.
(NASDAQ:CCOI). Nonetheless, owing to the company's trust in its ability to manage
the operation, maintain, upgrade, and expand its network, it continued to flourish.
Cogent recently returned its full-time employees to its offices in the United States.
It aims to do the same for the rest of its employees outside of the country.
5. BCE Inc. (NYSE:BCE)
Dividend Yield: 5.23%
Number of Hedge Fund Holders: 15
BCE Inc. (NYSE:BCE) is a Canadian-based technology and media company founded
in 1970. It was included in the Forbes list of Top 100 Digital Companies 2019
and Global 2000 2021. Further, it was reported in its financial highlight that BCE
Inc. (NYSE:BCE) obtained a total operating revenue of $5,836M in Q3 2021, an
increase of at least 0.8% over Q3 2020. According to the most recent data, its total
revenue in the previous 12 months was $18,665,430.30
Bell Wireless, Bell Wireline, and Bell Media are three of the company's segments.
As per Mirko Bibic, President and CEO of BCE Inc., their Bell's fiber and 5G internet
networks deliver the connections that Canadian consumers and companies
demand, particularly as everyone struggles to recover from the effects of the
COVID-19 crisis. With a clear strategic roadmap in their place, their team generated
strong results across all Bell operational segments in Q3. BCE Inc.'s (NYSE:BCE)
massive investments in network coverage, customer retention, lucrative data
plans, and the introduction of new devices are anticipated to drive subscriber base
growth.
4. Vodafone Group Public Limited Company (NASDAQ:VOD)
Dividend Yield: 6.61%
Number of Hedge Fund Holders: 18
With over 21 countries it is operating in and 49 countries it is collaborating with,
Vodafone Group Public Limited Company (NASDAQ:VOD) is indeed a well-known
telecommunications firm, especially in its bases in Europe and Africa. It caters to
health, banking and finance, manufacturing, retail, transit, and utility industries. It
also offers a range of connectivity options, all of which are supported by a
specialized worldwide network. Its goal is to promote digital inclusion by focusing
on connectivity, digital skills, and the creation of appropriate derivatives and
services such as access to education, healthcare, and banking. According to
Vodafone Group Public Limited Company's (NASDAQ:VOD) income statement, the
company's total revenue for the previous year was $50,891,790.78, which was
higher than the prior year's total revenue of $51,009,510.80. And its intraday
market cap, on January 20, 2022, is 40.79B. Therewithal, VOD's revenue is
projected to increase at a quicker rate of 1.73% per year than the US Telecom
Services industry average of 1.29%.
Withal, Vodafone has collaborated with two prominent industry pioneers,
Qualcomm Technologies, Inc. and Thales, to demonstrate a smartphone using an
iSIM. This revolutionary technology allows the functionality of a SIM card to be
incorporated into a device's primary CPU. Not only does it simplify and improve
device design and performance, but it also integrates SIM functions into the
device's main chipset.
3. SK Telecom Co.,Ltd (NYSE:SKM)
Dividend Yield: 7.22%
Number of Hedge Fund Holders: 6
The SK Telecom Co.,Ltd (NYSE:SKM) was founded in 1984 and is based in Seoul,
South Korea. As of December 31, 2020, the AI and digital infrastructure service
company had gained 3.8 million fixed-line telephone subscribers and 31.4 million
wireless subscribers. The current market cap of SKM is $10.057B, and the total
revenue for the trailing 12-month is $16,324,089.08.
During the CES 2022 event last January 5 to 7, SK Telecom, SK Square, and SK Hynix
announced the 'SK ICT Alliance' formation. This project collaborates on ICT
convergence technologies and generates global market potential. The three
businesses seek to perform joint commercial operations, called 'Synergy Council'
by using their own AI and 5G technology, investments ideation, and future
semiconductor technologies.
2. AT&T Inc. (NYSE:T)
Dividend Yield: 7.91%
Number of Hedge Fund Holders: 66
Most people are familiar with CNN, HBO, CN, TBS, TNT, and the Warner Bros.
studio, but little did they know that these companies are all under the same
corporation known as AT&T Inc. (NYSE:T). As of 2019, this American firm that
provides long-distance phone service and other telecommunications services is
also regarded as the largest telecommunications corporation. AT&T's revenue for
the fiscal year ending September 30, 2021, was $173.597 billion, a 0.41% increase
year to date. Moreover, AT&T Inc.'s (NYSE:T) earnings are projected to accelerate
at an astounding pace of 196.83% every year.
Given the extent and severity of the climate change crisis, it is clear that all firms,
small and medium-sized enterprises, must play a key role; thus, AT&T has set a high
target of being carbon neutral throughout our entire global operations by 2035.
Another significant change in AT&T's status is that it agreed to Microsoft's
acquisition of Xandr. According to Xandr's EVP and GM Mike Welch, Microsoft and
Xandr have shared ideals when it comes to a worldwide advertising platform to
support a free and open web.
1. Orange SA (NYSE:ORAN)
Dividend Yield: 8.70%
Number of Hedge Fund Holders: 3
Orange SA (NYSE:ORAN), initially known as France Télécom S.A., is a
telecommunications service provider that provides mobile and internet services.
The corporation was formed in 1794 in Paris, France; then, it expanded its
operations including Spain and other European nations, as well as Africa and the
Middle East. It has a market cap of $30.33B as of January 2022, gaining 8.82% from
its previous market cap of $27.86 billion. The Chairman and Chief Executive Officer
of the Orange group, Stéphane Richard said that their solid commercial
performance in the third quarter, highlighted by stable momentum in retail
services in all of the countries where they operate, enables them to confirm all of
their financial promises. In an economy still reeling from the consequences of the
healthcare crisis, including the acceleration of the digital revolution, their
customers' demand for high-speed access is reflected in their adoption of fiber, 5G,
and other convergent offerings. Meanwhile, Orange SA's (NYSE:ORAN) total
revenue in TTM is $48,133,919.07.
After 25 years of existence in Belgium, Orange Belgium's acquisition of VOO will
allow it to run a very high-speed network across Wallonia and parts of Brussels,
therefore boosting the national deployment of its convergent strategy. Other than
that, Orange SA (NYSE:ORAN) Business Services and Move Capital have teamed
together to help digital B2B technology companies in France and Europe. As a
result, by partnering with the Move Capital I fund, Orange Business Services is
reaffirming its commitment to being a stakeholder in a recognized panel of
European digital companies.