The Best Yielding Domestic Telecom Services Stocks

Author's Avatar
Mar 26, 2012
Stocks from the national telecom industry are interesting due to the high yields and the stability they offer. The whole industry has 20 companies listed on the stock exchanges of which 14 pay dividends. They all have a market capitalization of 402 billion and offer a yield of 5.6 percent. The average P/E ratio amounts to 14.7. Not bad for stocks with an average net profit margin of 10.4 percent. The big burdens for stocks from the telecom industry are slow growth and big outstanding investments due to higher communication volumes.


Here are my favorite stocks:



1. BCE (BCE, Financial)
has a market capitalization of $31.08 billion. The company employs 55,250 people, generates revenues of $19,536.07 million and has a net income of $2,579.16 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,202.40 million. Because of these figures, the EBITDA margin is 36.87 percent (operating margin 16.89 percent and the net profit margin finally 13.20 percent).


The total debt representing 37.61 percent of the company’s assets and the total debt in relation to the equity amounts to 107.61 percent. Due to the financial situation, a return on equity of 24.61 percent was realized. Twelve trailing months earnings per share reached a value of $2.89. Last fiscal year, the company paid $2.05 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 13.86, P/S ratio 1.59 and P/B ratio 2.91. Dividend Yield: 5.48 percent. The beta ratio is 0.85.


2. CenturyLink (CTL, Financial) has a market capitalization of $24.14 billion. The company employs 49,200 people, generates revenues of $15,351.00 million and has a net income of $573.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,029.00 million. Because of these figures, the EBITDA margin is 39.27 percent (operating margin 13.05 percent and the net profit margin finally 3.73 percent).


The total debt representing 38.90 percent of the company’s assets and the total debt in relation to the equity amounts to 104.84 percent. Due to the financial situation, a return on equity of 3.76 percent was realized. Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, the company paid $2.90 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 32.00, P/S ratio 1.57 and P/B ratio 1.16. Dividend Yield: 7.44 percent. The beta ratio is 0.73.


3. AT&T (T, Financial) has a market capitalization of $186.87 billion. The company employs 256,420 people, generates revenues of $126,723.00 million and has a net income of $4,184.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27,595.00 million. Because of these figures, the EBITDA margin is 21.78 percent (operating margin 7.27 percent and the net profit margin finally 3.30 percent).


The total debt representing 23.95 percent of the company’s assets and the total debt in relation to the equity amounts to 61.36 percent. Due to the financial situation, a return on equity of 3.63 percent was realized. Twelve trailing months earnings per share reached a value of $0.66. Last fiscal year, the company paid $1.73 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 47.69, P/S ratio 1.47 and P/B ratio 1.77. Dividend Yield: 5.58 percent. The beta ratio is 0.59.


4. Verizon Communications (VZ, Financial) has a market capitalization of $111.78 billion. The company employs 193,900 people, generates revenues of $110,875.00 million and has a net income of $10,198.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29,376.00 million. Because of these figures, the EBITDA margin is 26.49 percent (operating margin 11.62 percent and the net profit margin finally 9.20 percent).


The total debt representing 23.93 percent of the company’s assets and the total debt in relation to the equity amounts to 153.33 percent. Due to the financial situation, a return on equity of 6.45 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $1.98 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 46.55, P/S ratio 1.01 and P/B ratio 3.11. Dividend Yield: 5.07 percent. The beta ratio is 0.55.


Take a closer look at the full table of the best yielding telecom stocks. The average price to earnings ratio (P/E ratio) amounts to 39.89 and forward P/E ratio is 19.11. The dividend yield has a value of 5.83 percent. Price to book ratio is 3.12 and price to sales ratio 1.53. The operating margin amounts to 9.83 percent. The earnings per share is expected to grow 4.64 percent for the next year and 6.72 percent for the upcoming five years.


Related stock ticker symbols:

FTR, WIN, CNSL, CTL, WWVY, CHT, ALSK, T, BCE, HTCO, VZ, SHEN, ATNI, SURW


Selected Articles:

· Best Domestic Telecom Dividends 2011

· 12 Interesting European Telecom Dividend Stocks

· 14 High Yield Telecom Service Stocks