Dividend Stocks to Buy in the Telecom Sector

In the late 1990s, telecom companies like Global Crossing and Worldcom were Wall Street darlings, making investors the easiest money ever. But by 2002, the gold had turned to dust, sweeping away more than $1 trillion in telecom companies’ market value in just 24 months. Even the survivors who have present day dominance like AT&T (NYSE:T), Verizon (NYSE:VZ) and Century Link (NYSE:CTL) took a hit in stock price and dividends.

But times are changing in the sector as surging demand for broadband video and wireless data applications has put the telecom industry back on track. The industry even posted growth in the depth of the recession. And while telecom stock growth is not likely to rival the fast times of the late-1990s, the best companies in the telecom sector like AT&T, Verizon and Century Link are going strong. Still, investors shouldn’t be fooled into buying these top telecom stocks for their growth. The biggest reason to buy VZ, AT&T or CTL stock is for the income.

Source: InvestorPlace

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