Among companies in the wireless telecommunication services industry, two are extremely popular with dividend growth investors. AT&T Inc. (T) and Verizon Communications (VZ) are two of the most followed stocks by dividend growth investors.

Both stocks have high yields and long histories of growing dividends, especially AT&T, which is a Dividend Aristocrat.

Both of these companies are fairly mature, which means that they can deploy a large percentage of their capital in the form of dividends. This is what income investors find so attractive about AT&T and Verizon.

The flip side of owning these companies is that investors might miss out on a fast-growing company in the same industry simply because it does not pay a dividend.

Over the last five years, shares of T-Mobile US, Inc. (TMUS) have returned 273% compared to the 75% gain for the S&P 500. For comparison purposes, Verizon’s stock has gained 34% while AT&T is down nearly 15% over this same period of time. Adding the dividend yields to the return of these two stocks doesn’t even begin to bridge the gap between their returns and that of T-Mobile.

Dividend growth investors interested in the company will likely want to know if and when T-Mobile might pay a dividend. This article will examine the company’s business model, growth prospects, and its competitive advantages to see if a dividend is feasible in the near future.

Business Overview

Through its subsidiaries, T-Mobile provides wireless services for branded postpaid and prepaid and wholesale customers. The company has operations in the U.S., Puerto Rico, and the U.S. Virgin Islands. T-Mobile offers voice, messaging, and data services.

The company’s product offerings include wireless devices, such as smartphones, tablets and wearables, as well as accessories and wireline services.

T-Mobile was founded in 1994 and has a market capitalization of more than $165 billion today. The company produced revenue of $45 billion last year.

However, T-Mobile is on pace to generate more than $60 billion of revenue this year on account of its completed merger with Sprint in April of this year. T-Mobile crossed over the 100 million wireless customer mark in the most recent quarter. As a result, T-Mobile is now the second-largest wireless network in the U.S., trailing just Verizon.