Dan Moskowitz: Top 10 Telecom Stocks for 2015

Verizon Communications Inc. is the leading 4G LTE network in the United States. It’s also the highest quality network available. An increased demand for data and devices are positives, but lower prices due to competition are a negative. Nevertheless, buying out Vodafone’s 45% stake in Verizon Wireless aids free cash flow, which then helps maintain the generous dividend (more on dividends below).

AT&T has to contend with increased competition, especially with no-contract plans. However, thanks to its low monthly fee, subscribers are up and churn is down.

Atlantic Tele-Network isn’t a well-known name, but it sports a stellar balance sheet, and revenue and net income have increased year over year.

Nippon Telegraph and Telephone Corp. has managed to stay afloat on the top line while delivering bottom-line growth despite being trapped in Japan’s deflationary economy.

BCE is the largest telecommunications company in Canada, and Canada isn’t going anywhere. BCE is attempting to grow organically and inorganically. The latter is important due to increased competition.

CenturyLink has massive exposure to the rural U.S. market. The concern is that landline phones are on the decline, and the company cut its dividend back in 2013. On the other hand, fiber-optic TV is enjoying growth, and not many investors are going to complain about a 5.5% annual dividend yield.

Rogers Communications Inc. is another Canada play. It’s has also taken a slight hit due to competition, but it’s still performing well. And that 4.2% yield is certainly appealing.

Vodafone received a generous $130 billion for the sale of its stake in Verizon Wireless. This is obviously going to help maintain the dividend. Vodafone operates in 30 countries, and it recently spent $10 billion to purchase Ono — a Spanish cable operator. This added approximately 2 million new customers. The risk is the Spanish economy; Spain’s unemployment rate is 24%. It’s even worse for Spanish youths. Therefore, growth in that market might be difficult to come by. (For related reading, see: Is XTL a Good Investment?)

Telecom Argentina S.A. presents a good balance sheet and dividend yield is 3.20%

Orange like Telecom Argentina S.A. presents a good balance sheet too. The company pays 3.30% dividend