Telecoms' Dividend Yields

Those investors who are skeptical about dividends from the major telecoms AT&T (T) and Verizon (VZ) point to the declining wireline revenues as a factor putting the sales growth and dividend stream at risk. Clearly, telecoms don't have the utility-like stability of decades past, but we think fears are overstated. Telecoms today are not just about phones, wired or wireless, but also about data delivery in competition with cable companies for internet and TV services. We think that provides an important revenue replacement source for the declining wireline business.... Read more