Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

There are a group of stocks that investors like to call “widow and orphan” companies. The reason is that these stocks provide steady and dull growth. They also offer plenty of dividends along with that steady revenue generation. Summing up the widows-and-orphans moniker completely had to be the telecoms.

For the most part, as a sector, there isn’t anything particularly exciting about providing telephone, broadband or wireless service, aside from gathering new subscribers to their various networks. All of that has changed over the last few years as several telecoms began reimagining their business models to add a touch of real growth to their bottom lines.

The problem is, this is not exactly moving the needle. And in fact, many of the plans haven’t really worked at all. For investors banking on the sector’s growth potential, you have to ask whether or not; the industry is drifting back to its boring "widow-and-orphan” past?

Searching Anywhere for Growth

When wireless technology took off, and cell phones were in their infancy, the telecommunications sector had plenty of muscle behind it. As the novelty of having a cell phone and then a smartphone wore off and the devices became standard equipment for our modern lives, the big wireless carriers like AT&T (T ) and Verizon (VZ ) were able to add plenty of users under their umbrellas. As such, these additional users provided plenty of growth to their bottom lines.

To read the Full Story, Go Premium or Log In

Popular Articles


Las Vegas Sands Increases Dividend by 2.75%

Each day, companies across the globe announce upcoming dividend payouts. In our Dividend Payout...


Philip Morris International Inc. Leads 50 Stocks Going Ex-Dividend This Week

There are 50 stocks going ex-dividend this week starting Monday, March 19. For income investors...

Premium Shutterstock 179118050

The Market Glance for March 19: Shortage of Low-End Housing Slowing Down Market

Almost all analysts at major investment banks and fund managers are certain that the policymakers...