Five Latin American Telecom Stocks Yielding More Than 5% Dividends

The wireless telecom industry in Latin America is projected to have exponential growth over the next few years due to rising incomes and more population entering the middle class category. Cell phones have become a necessity of life worldwide and hence they will be one of the first few items that the middle class aspires to own in addition to others such as a TV, car, household appliances, etc.

From an article on the growth of Telecom industry in Latin America:

The research has been done, the opinions formed, and the consensus is unanimous: Latin America’s telecommunications sector is set for huge growth over the next few years. Driven by increasing end-user affluence, the region’s analysts expect to see a jump in smartphone ownership, rising broadband penetration rates and an increase in mobile services as costs come down and network capacities expand to embrace next generation communications.

Having the right infrastructures in place will be key. Brazil and Chile’s future is highly dependent on audacious and substantial investments into its infrastructure,” says Cristiano Zaroni, Research Director for Frost & Sullivan’s Latin America practice in a research note. As the financial status of its working age citizens continues to improve, demand for infrastructure-intensive services is expected to increase in importance. Internet and telecommunication will become more commonplace, encouraging more investment from international service suppliers and the build-up of larger and more advanced networks.

Five Latin American Telecom ADRs currently paying more than 5% dividends:

1.Company: Telefonica Brasil SA (VIV)
Current Dividend Yield: 14.13%
Country: Brazil

2.Company: Telefonos de Mexico SAB de CV (TMX)
Current Dividend Yield: 5.89%
Country: Mexico

3.Company: Telecom Argentina Sociedad Anonima (TEO)
Current Dividend Yield: 9.20%
Country: Argentina

4.Company: Telefonos de Mexico SAB de CV (TFONY)
Current Dividend Yield: 5.94%
Country: Mexico

5.Company: Brasil Telecom SA (BTM)
Current Dividend Yield: 11.93%
Country: Brazil

Note: Dividend yields noted are as of Nov 25, 2011

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