#2: Verizon (VZ)
The telecom sector has definitely lagged the Dow Jones in 2013, but then again, you don’t buy a stock like Verizon (VZ) for the capital appreciation — the stock is only up 11% for the year. In that time, however, you would have collected $2.06 per share in dividend income.
With a yield of 4.4%, VZ isn’t the highest-yielding stock in telecom, but it is the largest mobile provider in the United States — so you know it’s good for those quarterly payouts.
In fact, Verizon has been steadily increasing its payouts for seven consecutive years. Most recently, VZ has upped its dividend by almost 3%, to 53 cents from 51.5 cents — or $2.06 on an annual basis.
And you can expect that number to keep growing as the company continues to expand its online business. In early December, Verizon announced it would be acquiring EdgeCast, a privately held company specializing in online content delivery networks.
VZ posted double-digit earnings growth in its last quarterly report, and the company is showing no signs of slowing down. Forget capital gains for now — this is a relatively cheap stock that will pay you well in the long run.