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Highlights
- Interpublic Group of Companies, Inc. (NYSE:IPG) has a dividend yield of 2.88% and an annualized dividend of US$1.08.
- On January 11, the U.S. Department of Defense extended a contract valued at US$29 million with Motorola (NYSE:MSI) for operations and maintenance of the land mobile radio (LMR) system of the US Navy.
- Cisco Systems, Inc. (NASDAQ:CSCO) recently announced a team up with Amazon and Lockheed Martin to integrate human-machine interface technologies into the Orion spacecraft of NASA.
The communication sector comprises companies ranging from advertising, broadcasting, internet companies, interactive media and and services to communication equipment providers. At present, where information technology companies provide software to connect, telecommunication service providers offer networks to facilitate connecting the world.
With the coronavirus, digital communication dependency has increased manifold in every sphere of life. Thus, the communication sector could grow.
T-Mobile (TMUS), Meta Platform (FB), Alphabet (GOOG, GOOGL), and Netflix (NFLX) are the more prominent names in communication, but they don’t really pay dividends.
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Here we discuss five communication stocks that have not only grown in double digits in one year but also have given dividends.
Interpublic Group of Companies, Inc. (NYSE:IPG)
The company has a dividend yield of 2.88%, with an annualized dividend of US$1.08.
Interpublic Group is a holding company based in New York that provides traditional advertising services as well as digital and other services, including public relations, through its acquisitions. Its services are available in more than 100 countries.
The advertising company has a market capitalization of US$14.7 billion. Its P/E ratio is 21.1, and its forward P/E ratio is 14.41.
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It earned the revenue of US$7.3 billion in the nine months ended September 30, 2021, compared to US$6.5 billion for the corresponding period in the previous year. The net income of the company came in at US$595 million or US$1.49 per share diluted in 2021 compared to US$239 million or US$0.61 per share diluted for the nine months ended September 30, 2020.
Its cash and equivalents were almost flat at US$2.49 billion as of September 30, 2021, versus US$2.51 billion as of December 31, 2020.
IPG stock traded in the range of US$39.35 to US$23.89 in the last 52 weeks and closed at US$37.35 on January 11, 2021.
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Juniper Networks, Inc. (NYSE:JNPR)
Juniper Networks’ current dividend yield is 2.34%, with an annualized dividend of US$0.80.
Sunnyvale, California based Juniper is engaged in developing and selling the network industry products and services, including routing, security, switching, and related software products. It was incorporated in 1996. Its primary selling verticals are cloud, communication service providers, and enterprise.
The computer equipment company has a market capitalization of US$11.5 billion with a P/E ratio of 78.58 and a forward P/E ratio of 29.25.
The company will declare its fourth quarter and Fiscal 2021 results on January 27, 2022.
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For the nine months ended September 30, 2021, the company earned a revenue of US$3.44 billion compared to US$3.22 billion in the same period in 2020. Its net income was US$120 million or US$0.36 per share diluted compared to US$227 million or US$0.68 per share diluted for the corresponding nine months in 2020.
It's cash and equivalents were US$1.01 billion as of September 30, 2021, compared to US$1.36 billion as of December 31, 2020.
The JNPR stock traded in the range of US$36.03 to US$23.12 in one year and closed at US$35.36 on January 11.
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Motorola Solutions, Inc. (NYSE:MSI)
Motorola Solutions’ dividend yield is 1.25%, and the annualized dividend is US$3.16.
On January 11, the U.S. Department of Defense extended the contract with Motorola valued at US$29 million for providing the operations and maintenance of the land mobile radio (LMR) system of the US Navy. This is the third year under the multi-year agreement.
The company provides communication and analytics in the safety departments, hospitals, schools, and businesses. Besides selling land mobile radios and radio infrastructure, it also sells surveillance equipment and dispatch software. The Chicago, Illinois-based company has customers in more than 100 countries.
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The broadcasting communication equipment provider’s market capitalization is US$43.2 billion with a P/E ratio of 35.41 and a forward P/E ratio of 30.81.
For the nine months ended October 02, 2021, its net earnings were US$844 million or US$4.87 per share diluted, on net sales of US$5.85 billion. The net earnings and revenue for the nine months in 2020 were US$540 million or US$3.08 per share diluted and US$5.14 billion, respectively.
Its cash position improved with cash and cash equivalents of US$1.65 billion as of October 02, 2021, compared to US$1.25 billion as of December 31, 2020.
The MSI stock traded in the range of US$273.65 to US$167.07 in the last 52 weeks and closed at US$256.05 on January 11.
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Cisco Systems, Inc. (NASDAQ:CSCO)
Cisco Systems has a dividend yield of 2.42% and annualized dividend of US$1.48.
Based in San Jose, California, the computer equipment company supplies hardware and software in the networking solutions sector. Its portfolio has analytics, Internet of Things, collaboration products, firewall and software-defined security products, technical support, and advanced services offerings.
The company recently announced to team up with Amazon and Lockheed Martin to integrate human-machine interface technologies into the Orion spacecraft of NASA.
The company has a market capitalization of US$263.1 billion. Its P/E ratio is 23.19, and its forward P/E one year ratio is 20.14.
For the first quarter ended October 30, 2021, the company posted revenue of US$12.9 billion, an 8% increase YoY compared to US$11.9 billion in the same quarter of 2020. Its net income came in at US$2.98 billion or US$0.70 per share diluted compared to US$2.17 billion or US$0.51 per share diluted in the corresponding 2020 quarter. Its cash and equivalents were US$7.6 billion as of October 30, 2021.
The stock traded in the range of US$64.28 to US$44.15 in the last 52 weeks and closed at US$62.37 on January 11, 2022.
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Source - pixabay
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Nexstar Media Group, Inc. (NASDAQ:NXST)
The company has a dividend yield of 1.8% and an annualized dividend of US$2.80.
Irving, Texas-based company Nexstar owns and operates television stations and is the largest in the US. It has 197 stations in 115 markets. 158 of the total 197 stations are affiliated with the four broadcasters: CBS, Fox, NBC, and ABC.
Nexstar has a market capitalization of US$6.32 billion. Its P/E ratio is 7.44, and its forward P/E ratio is 8.78.
The company will report its fourth-quarter results on January 22. For the nine months ended September 30, 2021, the company earned revenue of US$3.4 billion versus US$3.12 billion for the same period in 2020. T booked net income of US$570 million or US$12.84 per share diluted compared to US$447 million or US$9.50 per share diluted for the nine months in 2020. Its cash and equivalents were US$4.3 million as of September 30, 2021.
The stock traded in the range of US$171.16 to US$106.67 in the last 52 weeks. It closed at US$154.74 on January 11, 2022.
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Bottom line
The Communication Services Select Sector SPDR Fund (XLC) has given a 18.28% return in one year, whereas the S&P 500 rose 25.80% in the same duration. However, communication is a need, and the sector may remain popular during the pandemic period and beyond. For an investor, it is essential to research before selecting stocks for investment.
