Which are the top five dividend-paying stocks in the telecom space?

Summary

  • The telecom sector is at the core of digital disruption and is transforming rapidly, bringing changes to our lives.
  • The Australian telecom sector is amongst the most competitive and mature telecom markets worldwide.
  • Generally, telecom players have consistent, predictable earnings, and they pay consistent dividends.
  • Some leading dividend-paying telecom stocks on ASX include Spark New Zealand, Telstra, TPG Telecom, Chorus and MNF Group.

The telecom industry is at core of digital disruption. The industry is rapidly evolving rapidly, bringing major changes to our lives. At present, Australia is currently migrating to a 5G network.  Migration to  5G and the growing use of evolving technologies like Artificial Intelligence and IoT applications coincide with the increasing competitive and regulatory pressures.

In the existing telecom space, companies that are likely to be successful in the future are the ones that adapt and drive new value with pace.

DO READ: All you need to know about 5G technology in Australia

Source: © F11photo | Megapixl.com

The Australian telecom sector is amongst the most competitive telecom markets in the world. Experts believe that during the period 2020 - 2025, mobile subscription would continue to grow while fixed broadband subscribers would grow at a slightly lower average rate.

Being at the heart of digital disruption and its significance in everyday lives makes telecom attractive. Further, many telecom players have generated consistent, predictable earnings, and pay regular dividends. These stocks also trade at  reasonable valuations, thus, making them great defensive players even if the market conditions are not favourable.

On that note, let us look at the top five ASX-listed dividend-paying stocks from the telecom space.

INTERESTING READ:

Spark New Zealand Limited (ASX:SPK)

Spark New Zealand Limited is the largest telecommunications and digital services company. The Company believes that its success is dependent on customers in New Zealand. Thus, it is passionate about using technology to be genuinely helpful to its clients, assisting make New Zealand better and enhancing the lives of citizens there.

Spark New Zealand has consistently paid a dividend to its shareholders since 2015. In 1H FY2021, the Company paid an interim dividend of NZ$0.14705882 (equivalent to AU$0.13491176). As of 18 June 2021, SPK’s annual dividend yield is 5.24%.

Image Source © Kalkine Media, Data Source: ASX

Telstra Corporation Limited (ASX:TLS)

Telstra Corporation Limited is Australia’s largest provider of telecommunications and information services, including mobiles, internet, and pay television. It has built Australia’s first and largest 5G network. It is currently rolling out 5G in selected regions on selected plans.

ALSO READ: Telstra (ASX:TLS) hits significant milestone, 5G coverage within reach of 50% Aussies

Telstra is also a consistent dividend payer since 2015. Since 2018, the Company has provided a constant dividend of AU$0.08. In 1H FY2021, the Company paid an interim dividend of AU$0.08.  As of 18 June 2021, TLS has an annual dividend yield of 4.48%.

Image Source © Kalkine Media, Data Source: ASX

Chorus Limited (ASX:CNU)

Chorus Limited owns and operates a nationwide fixed-line access network infrastructure in New Zealand. CNU builds and manages an open-access internet network, rolling out ultra-fast broadband to benefit generations in the upcoming future.

Chorus has consistently provided dividend since 2017. In 1H FY2021, CNU paid an interim dividend of AU$0.097 on 13 April 2021. As of 18 June 2021, CNU’s annual dividend yield is 3.90%.

Image Source © Kalkine Media, Data Source: ASX

MNF Group Limited (ASX:MNF)

MNF Group Limited provides broadband VoIP phone services to the housing and business markets in Australia. MNF Group’s platform allows providers to provide their services utilizing phone or mobile numbers local to their clients.

Since 2015, the Company has consistently provided a dividend to its shareholders. In 1H FY2021, MNF paid an interim dividend of AU$0.033 on 01 April 2021. As of 18 June 2021, MNF has an annual dividend yield of 1.26%. 

Image Source © Kalkine Media, Data Source: ASX

TPG Telecom Limited (ASX:TPG)

TPG Telecom Limited was formed after Vodafone Hutchison Australia Limited and TPG Corporation Limited merged in 2020. TPG Telecom Limited is the second-largest telecommunications company on ASX and has a strong challenger attitude and a dedication to providing the best services and products to its customers.

Post the merger, TPG Telecom provided the final dividend of AU$0.075 on 14 April 2021.

Image Source © Kalkine Media, Data Source: ASX

DO READ: TPG Telecom’s (ASX:TPG) profit rockets 362% despite pandemic


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