Building a Telecom Dividend Portfolio Around T-Mobile US (TMUS)

T-Mobile US, Inc. (NASDAQ:TMUS) is included among the 11 Best Telecom Dividend Stocks to Buy for 2025.

T-Mobile US, Inc. (NASDAQ:TMUS) ranks as the second-largest wireless provider in the US by subscriber count, serving nearly 133 million customers as of the second quarter of 2025. That figure grew by more than 4 million in August 2025 following its $4.3 billion acquisition of UScellular.

While most of T-Mobile US, Inc. (NASDAQ:TMUS)’s revenue comes from postpaid and prepaid wireless plans, the company also provides home internet and even online banking services. To strengthen its home internet offering, it finalized the purchase of fiber-to-the-home provider Lumos earlier this year. The company has rapidly put its spectrum to use, creating the largest 5G network in the US with coverage that surpasses its main rivals. Looking ahead, the company is positioned to draw customers through the strength of its brand and quality of service, rather than depending on aggressive promotions as it did in the past. This shift is reflected in recent financial results, where average revenue per user has risen significantly compared to levels earlier in the decade.

T-Mobile US, Inc. (NASDAQ:TMUS) started its dividend policy in 2023 with a per-share dividend of $0.65 every quarter. It currently offers a quarterly dividend of $1.02 per share, after announcing a 16% hike in September this year. As of September 24, the stock has a dividend yield of 1.71%.

While we acknowledge the potential of TMUS 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.