Telecom Cashcows Scare Some Dividend Investors

European telecom stocks have declined more than 10 percent over the past year, while the benchmark Stoxx Europe 600 index is up more than 7 percent. That sell-off has pushed yields on many large-cap names to between 6 and 10 percent. Yet dividend fund managers who would normally snap up such high yielding stocks are steering clear, worried about the sector's health and the prospect of dividend cuts.