Don't Buy These Major Dividend Players, Buy This Telecom Stock Instead

Telecom investors are often attracted to the strong dividends many companies in the industry pay. But you might be better off ignoring the dividends and investing in another stock instead.

T-Mobile US (NASDAQ: TMUS) holds a lot of appeal versus its dividend-paying competition, AT (NYSE: T) and Verizon Communications (NYSE: VZ). While the latter pay shareholders dividends of roughly 7.5% these days, T-Mobile doesn't pay investors anything for holding shares.

But even without a dividend, T-Mobile could end up returning more cash to shareholders over the next few years.

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Source Fool.com