Current Yield: 11.2%
Finally, I want to put out one recommendation that is likely to get your pulse racing a little more than the rest: Spanish telecom juggernaut Telefonica (NYSE:TEF).
There is little more boring than a telecom utility. While you might “ooh” and “ahh” over your latest iPhone, you generally spend very little time thinking about the company that provides cellular service to it.
Telefonica would have to be considered “riskier” than the rest of these recommendations by virtue of being domiciled in Spain. But with a yield of more than 11% at current prices, I consider it a risk worth taking.
Telefonica gets nearly half of its revenues from the fast-growing markets of Latin America, so continued recessionary conditions in Spain do not present an undue risk to Telefonica’s business. Disruptions to the European financial system could result in the company cutting its dividend to preserve cash, but I consider this unlikely and, again, a risk worth taking for the potential rewards.
Charles Lewis Sizemore, CFA, is the editor of the Sizemore Investment Letter, and the chief investment officer of investments firm Sizemore Capital Management. All securities mentioned are holdings of the Sizemore Capital Dividend Growth Portfolio. Sign up for a FREE copy of his new special report: “Top 3 ETFs for Dividend-Hungry Investors.”