It’s no secret that inflation has been heating up over the past few years. Since the onset of the COVID-19 pandemic, supply chains and the labor market have been in a state of continuous disruption.

At just about every turn, consumers have had to pay more for the goods and services that they rely upon. Telecommunications hasn’t been spared from this trend.

In fact, a report released in November 2023 found that the average American now spends $1,342 per year on their phone bill. This was up 5% from the previous year. Importantly, this figure reveals that the average phone bill has significantly topped the psychologically important $100 per month mark.

At least through early 2024, phone bills are still continuing to rise. While this is bad news for consumers, investors can protect themselves from this inflationary trend by investing in these three telecom stocks to buy today.

Verizon Communications (VZ)

Verizon Communications (NYSE:VZ) is one of the three dominant mobile phone carriers in the United States.

The company is known for its high-quality network that can offer more reliable coverage and faster data connections compared to rivals. This unparalleled network strength didn’t come cheap. Verizon had to invest heavily in building out its network; this included painfully expensive 5G network rollout costs over the past few years.

These capital expenditures depressed Verizon’s free cash flow, limited dividend growth, and caused investors to fret about the company’s large debtload. That’s all doubly true in a time of raising interest rates.

However, Verizon has now turned the corner. It’s well past the peak of that capital expenditure cycle, and it sees continued restraint in 2024 on that front. Meanwhile, the company’s investments are paying off. Verizon has shown increasingly strong wireless subscriber trends in recent quarters and has scored several analyst upgrades as a result.

Verizon offers a premium mobile experience for its customers, and its stock offers a premium dividend for its shareholders with VZ stock yielding 6.6% today.

American Tower (AMT)

American Tower (NYSE:AMT) is the world’s largest real estate investment trust within the specialized category of telecom and communications assets. It controls more than 224,000 communications sites. American Tower’s business is primarily in operating cell phone towers, both in the United States and increasingly in many emerging markets such as Latin America and India.

The company continues to show strong ongoing growth, particularly from developing countries, as data demand has soared. That’s especially true since the pandemic as remote work and learning took off.

Cell phone towers have a strong business model, as each tower can serve multiple carriers. This delivers both operational scale and a loyal client base with minimal customer churn.

Despite overall rising spending in the industry and continuing demand growth, AMT stock has suffered thanks to the higher interest rate environment. Investors are worried about the firm’s high debtload and sensitivity to the macroeconomic environment. That’s a valid concern.

However, the company’s mission-critical assets aren’t going out of favor anytime soon. Meanwhile, the stock’s dividend yield has ticked up to 3.8% as the share price has declined.

Telus (TU)

Telus (NYSE:TU) is one of the three prominent Canadian telecommunications companies.

Like with the United States market, this consolidation within the Canadian market has served its local carriers well. They have pricing power and have been able to increase customer spend, especially in this inflationary environment.

In fact, Canadian phone bills tend to be among the highest of any large country worldwide. Perhaps even to the extent of generating pushback, as Canadian policymakers have pressured the industry around rate hikes.

That, along with high interest rates, has cast a shadow on Telus’ stock price over the past year. On the other hand, high pricing power and regulatory inquiries often indicate that a company has a strong competitive moat. This superior positioning can deliver strong returns for investors in the years to come.

Specifically, Telus shares are offering a nearly 7% dividend yield today. Morningstar agrees that shares are a bargain; analyst Matthew Dolgin has given TU stock a 5-star rating and believes shares are 34% undervalued today.

On the date of publication, Ian Bezek held a long position in AMT and VZ stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.