Telecom companies have a long history of paying out healthy dividends. In fact, with an average dividend yield of almost 5%, telecom is the highest yielding sector in the S&P 500, according to S&P Dow Jones Indicies.
Under current law, the top tax rate is 15% on qualified dividend and long-term capital gains. While Obama would start taxing dividends at ordinary income tax rates, Romney would exempt dividends from taxes.
That's why analysts expect a Romney win would boost the overall sector and relieve investors who hold stakes in companies like AT&T (Fortune 500), , Verizon (Fortune 500), , Windstream ( and )CenturyLink (Fortune 500), which pay dividends of 4% to 9%. ,
A Republican victory would also likely support telecom mergers, such as the rejected AT&T and T-Mobile deal, said Sam Stovall, chief equity strategist at S&P Capital IQ. That could benefit companies like MetroPCS (Fortune 500) and , Leap Wireless (, which have been rumored to be takeover targets. )
The presidential election is less than two months away, and the race is tight. But if you think President Obama will be re-elected, consider investing in these five sectors.