Why Iridium Communications (IRDM) Could Be a Valuable Addition to a Telecom Dividend Portfolio

Iridium Communications Inc. (NASDAQ:IRDM) is included among the 11 Best Telecom Dividend Stocks to Buy for 2025.

Iridium Communications Inc. (NASDAQ:IRDM) provides global satellite-based voice and data services through a constellation of 66 low Earth orbit (LEO) satellites. Its network is distinctive for offering real-time connectivity with low latency, even in remote and polar regions. The company serves commercial clients across maritime, aviation, IoT (Internet of Things), and government sectors, supporting critical applications in defense, logistics, and emergency response.

Iridium Communications Inc. (NASDAQ:IRDM)’s recent strategy focuses on sustaining strong government contracts, including its multi-year Enhanced Mobile Satellite Services (EMSS) agreement with the US Department of Defense. The company is also expanding into new areas, such as direct-to-device (D2D) satellite connectivity and satellite-based positioning, navigation, and timing (PNT) services, following its acquisition of Satelles. Its success continues to rely on robust government relationships, consistent service revenue, and the ability to scale offerings using its fixed-cost satellite infrastructure.

Iridium Communications Inc. (NASDAQ:IRDM) initiated its dividend policy in 2022 and has paid regular dividends to shareholders since then. The company currently offers a quarterly dividend of $0.15 per share and has a dividend yield of 3.44%, as of September 24.

While we acknowledge the potential of IRDM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.