Telstra Corporation Ltd (ASX: TLS) is Australia’s leading telecommunications provider, with a market capitalisation of $65.8 billion and a rock-solid dividend yield of 5.5% — fully franked, of course.

Although it is not screaming “BARGAIN” with a price tag of $5.30, it is definitely a stock which would catch the eye of investing great Warren Buffett. While Buffett would obviously prefer to buy stocks when they are trading at extremely discounted prices, he is more than willing to pay up for high-quality when he believes there are long-term, market-smashing profits to be made.

In addition to boasting an expanding local customer base and improving customer service levels, Telstra’s growth prospects both locally and overseas are looking very appealing.

To begin with, society’s reliance on smartphones and broadband services is increasing at an alarming rate. As Australia’s largest telco, Telstra is in the box seat to benefit as more and more devices become connected to the internet. The rapid rise of cloud computing and machine-to-machine communications will both require faster internet connections and  greater data storage over time.

Looking overseas, Telstra also boasts strong growth potential in the Asian markets. Although international expansion always introduces new risks, it can also bring about an incredible opportunity to expand market-reach and profitability. In fact, CEO David Thodey hopes to generate a third of Telstra’s revenues from the continent by 2020.

While Telstra might not be as exciting or as “sexy” an investment as other telcos like M2 Group Ltd (ASX: MTU), TPG Telecom Ltd (ASX: TPM) or iiNet Limited (ASX: IIN), there is no questioning the quality of the company or the market-beating returns it could yield in the long-run for investors who buy today.

Another Buffett-worthy ASX stock you NEED to look at!

While Buffett is more than happy to pay up for quality, he also loves a bargain when he sees one. And this little-known ASX growth stock is just the kind of company he loves to find…

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Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.