Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it produces some of Wall Street’s most coveted research and serves as a bellwether for the financial industry. With the stock market hitting record highs seemingly every day, we considered the firm’s new research report on dividend-paying telecom stocks to be timely, to say the least.
Goldman Sachs also provides advice, investing, and execution for institutions and individuals across public and private markets. At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers its top stock ideas. Recently, some big targets on Strong Buy-rated dividend telecom stocks caught our attention. While technically falling within the Cable and Wireless silo of the telecom world, all the Buy-rated companies in the Goldman Sachs research report now make sense for investors concerned about the potential for a significant market correction, while also seeking to generate consistent and dependable passive income.
Why we recommend Goldman Sachs telecom stocks
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
AT&T
AT&T Inc. (NYSE: T) is the world’s fourth-largest telecommunications company, measured by revenue, with a solid dividend yield of 3.80%. The legacy telecom has been undergoing a lengthy restructuring while lowering its dividend. Seventeen analysts have given the stock a Buy rating, indicating comprehensive Wall Street support. AT&T provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.
The Goldman Sachs team commented on the legacy telecom giant:
Expectations remain elevated, given the company’s consistently positive messaging throughout conference season, and management reiterated 2025 guidance as recently as early September. We believe AT&T remains a popular long given its recent operational outperformance, relative discount to T-Mobile, and medium-term growth algorithm. Bears point towards consensus positioning (for hedge funds), rising churn, and concerns on wireless competition dynamics including slower industry subscriber growth.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- Security
- Cloud solutions
- Outsourcing
- Managed and provided professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers
Additionally, this segment provides residential customers with broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under:
- AT&T
- Cricket
- AT&T Prepaid
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
Goldman Sachs has a price target of $32 for the stock.
Comcast
Comcast Corp. (NYSE: CMCSA) is an American multinational conglomerate that operates in the telecommunications and media industries, paying a solid 4.05% dividend. This top media and entertainment company remains a favorite among Wall Street investors. Comcast is a global media and technology company. The Goldman Sachs analyst noted this in the research report:
We think investor positioning is broadly negative given tough broadband subscriber trends, concerns on near-term EBITDA growth in the C&P segment as the company invests for growth, and slowing broadband ARPU growth. We think bulls are hopeful that broadband net addition estimate revisions have bottomed, Theme Parks can drive idiosyncratic growth vs. cable peers, and discounted valuation. We think bears remain steadfastly focused on broadband net additions and the EBITDA growth outlook.
It operates through four segments:
- Residential Connectivity & Platforms
- Business Services Connectivity
- Media, Studios
- Theme Parks segments
The Residential Connectivity & Platforms segment offers residential broadband and wireless connectivity services, as well as residential and business video services, Sky-branded entertainment television networks, and advertising.
The Business Services Connectivity segment offers connectivity services for small business locations, including broadband, wireline voice, and wireless services. It also offers solutions for medium-sized customers, larger enterprises, and small businesses, as well as connectivity services in the United Kingdom.
The Media segment operates NBCUniversal’s television and streaming business, including:
- National and regional cable networks
- The NBC and Telemundo broadcast networks
- Owned local broadcast television stations
- Peacock, a direct-to-consumer streaming service
It also operates international television networks comprising the Sky Sports networks and other digital properties.
The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations.
The Theme Parks segment operates Universal theme parks in:
- Orlando, Florida
- Hollywood, California
- Osaka, Japan
- Beijing, China
Goldman Sachs has set a $39 target price for the stock.
T-Mobile
As one of the fastest-growing companies in the sector, this is an ideal pick with a 1.48% dividend for those with slightly higher risk tolerance. T-Mobile US Inc. (NASDAQ: TMUS) is a provider of wireless communications services, including voice, messaging, and data, under its flagship brands, T-Mobile and Metro by T-Mobile, and Mint Mobile, in the United States, Puerto Rico, and the United States Virgin Islands.
The Goldman Sachs research report contained this information about the company:
Investors expect better than consensus EBITDA and postpaid net additions and expect the company to increase guidance. Depending on the amount of integration expenses the company plans to spend in 2025, it could drive FCF guidance lower than at 3Q results, all else equal. Bulls are looking for strong upside to phone net adds and EBITDA to show continued outsized growth vs. peers while bears point to premium valuation (particularly vs. AT&T) and concerns that T-Mobile could be most exposed to slowing industry growth given its outsized subscriber growth vs. peers.
The company provides communications services primarily using its 4G Long Term Evolution network and its 5G technology network.
T-Mobile also offers a selection of wireless devices, including handsets, tablets, and other mobile communication devices, as well as accessories for sale, along with financing options through equipment installment plans.
Its primary service plan offering is Go5G Plus, which includes unlimited talk, text, and data on its network, 5G access at no extra cost, scam protection features, and more. In addition to its wireless communications services, the company also offers high-speed Internet, which includes a fixed wireless product that utilizes the excess capacity of its nationwide 5G network. It also provides advertising solutions.
Goldman Sachs has a $286 price objective.
Verizon
Verizon Communications Inc. (NYSE: VZ), commonly known as Verizon, is an American multinational telecommunications company that continues to offer tremendous value and a 6.28% dividend. It trades at 9.13 times its estimated 2026 earnings and is up almost 10% in 2025. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.
The analysts said this when discussing the company:
We believe expectations are low, and based on our conversations with investors, we think many expect worse than consensus postpaid phone net additions. Investors are focused on rising churn (likely due to price hikes) and whether this will be able to return to more normal levels in the coming quarters. Bulls prefer VZ as an out-of-consensus idea at a discounted valuation, while bears point out slower growth and risk to subscriber growth expectations.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.
It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.
Goldman Sachs has a Buy rating and a price target of $49.
As Warren Buffett Indicator Signals Danger, His Four Highest-Yielding Stocks Offer Safety
Top Gaining Stocks
Top Losing Stocks