Top Telecommunications Companies Preparing for 5G Rollout
The telecommunications sector is composed of companies that provide communication through wired and wireless infrastructure. Some companies are considered both income and growth stocks, due to their strong performance, regulatory protection and good dividends.
The latest generation of cellular mobile communications, 5G, is rolling out, and these companies are preparing to offer high data rate, reduced latency, cost savings and energy saving. Innovations like this contribute to the growth and success of the industry.
Furthermore, telecommunications is considered a defensive stock, as the demand remains steady in times of economic stress and subscription plans give a stable source of revenue.
BCE Inc. (BCE-T)
The holding company for Bell Canada group. They’re almost done their fibre to home that will give them more market share. BCE is the dominant player in this space and they pay a 5.5% dividends. They are well managed and are considered a good defensive stock that will weather a recession.
Own it for income, with attractive dividend yield close to 7%. Share price beaten down. Telecom industry in Canada is basically an oligopoly, despite upcoming increase in competition from Rogers-Shaw. Benefits from immigration.
Telus Corp (T-T)
One of the three big Canadian telecom company. They beat subscriber growth and reduced churn in Q4. They’ve increased dividends by 7% and is projected to increase. They have invested in data and are increasing their free cash flow.
All Canadian telco stocks have moved in tandem, all facing the same headwinds. Higher interest rates mean less money to reinvest in the business or pay out in dividends. Higher expenses for 5G rollout. Very competitive space. Good for portfolio stability, but don't back the truck up. Yield close to 6.3%.
Shaw Communication (B) (SJR.B-T)
A Canadian telecommunications company that has extensive fibre optic network that provides telephone, internet, tv, and mobile services. They are expected to get get a good market share of 5G. They pay a 4% monthly yield.
It comes down to the Rogers deal, which the street thinks will happen, but this is the fourth deadline extension. The deal has been priced into shares, so there isn't much upside. Better to buy Rogers or Telus than Shaw.
Rogers Communications (B) (RCI.B-T)
A telecom leader that also owns media. They pay a good dividends that is expected to be increased. I has organic growth and some say the media assets are undervalued. They have the largest wireless network in Canada and is considered a defensive growth name.
(A Top Pick Dec 30/22, Down 10%) All telcos are down this year. The valuation has fallen so low that he's buying more shares. The pandemic showed the need to sustain and improve the networks. Rogers and their peers enjoy an oligopoly too.
Quebecor Inc (B) (QBR.B-T)
A Quebec based communications company that has seen earning growth of over 20%. The growth has been exponential and the company is managed well. Their main area served is limited to Quebec, and are investing in their network.
Telcos in Canada are in a unique spot. Quebecor has really upped the competitive pressure, positive for the consumer but negative for BCE and Telus. Stay away from those two, and see how things shake out. Prefers RCI.B, with its ability to shave costs from Shaw, or QBR.B.
Telefonica S.A. (TEF-N)
An international telecommunications company based in Spain. Revenues rose in 2018, and they are expecting a 2% organic in revenue. They sold their mobile communications assets in some central American countries back in February.
It's a telecom, which is the worst industry to ever invest in. Telecoms are being swept into the new communication industry which will also include media, cable and internet search. The telecom industry will cease to exist. He's not intersted in telecoms at all. It's crazy. He once paid for long-distance calls; now, they're giving…
One fo the oldest telecommunications company. They have consistently raised dividends for the past 30 years and own 1/3 of the wireless market share in the U.S. They are considered lower risk than their European counterpart.
Recent troubles with dividend has lost confidence from investors. Probably not at bottom. Very competitive business with lots of competition from other carries. Would not recommend investing.
AMERICA MOVIL, S.A.B. DE C.V. (AMX-N)
A Mexican telecommunications corporation that is the fourth largest mobile network operator. Their share price jumped following their acquisition of Nextel’s Brazil operation giving them a strong position in Latin America.
(A Top Pick June 5/07. Down 8%.) Largest cellular company in Mexico. Their capacity utilization of the network is superior to many other global ones. Very Bullish on this stock.
Vodafone Group PLC (VOD-Q)
The United Kingdom’s largest telecom company that offers voice, broadband and data services. Most of their business is in Europe. Due to them being a UK-based company, Brexit talks have negatively affected this stock. They are facing big capital expenditures with 5G but their dividends are considered safe.
(A Top Pick Sep 07/23, Down 2.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with VOD has triggered its stop at $9. To remain disciplined, we recommend covering the position at this time. When combined with previous buy recommendations, this will result in a net investment loss of 4%.
Verizon Communications (VZ-N)
They are the largest telecommunications company in the U.S. and operates internationally. They pay an attractive dividends of 4.2% and their balance sheet looks good. 5G infrastructure will make it a good long term story.
This and AT&T have been hit hard from the anti-dividend stock trend, but also have huge upside if interest rates decline. Are not undervalued and, yes, carry a lot of debt. Yes, there are cable-cutters, but people still watch live sports and that won't vanish. Is oversold.
T-Mobile US (TMUS-Q)
They recently launched their home internet pilot in the US for rural and underserved markets.. They are seeking a merger with Sprint on the grounds that wireless telecommunications and cable are coming together. If this goes through, it could see major upsides.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research TMUS is reasonably priced at 19X earnings. Growth looks good; EPS has gone from 99c in 2015 to an expected $10.02 next year. 2024 growth vs 2023 is expected at more than 40%. 2025 growth will not be that high but should still be quite…
Sprint Nextel (S-N)
A U.S. telecommunications holding company. They just announced a merger with T-Mobile, and its consolidation is seen positively by experts. Sprint does not pay a dividend.
Just announced a merger with T-Mobile (TMUS-Q). Telecom has been an industry under pressure for a long time, and we are starting to see smaller players consolidate to cut costs. These are investments you want to hold, only to milk the cash flows remaining in them. The saturation level of smart phones is pretty high.…
China Mobile Hong Kong (CHL-N)
A Chinese state-owned telecommunication company. They have grown their dividends reliably. There is still growth opportunity in China but it’s still a mature business. They have a good balance sheet and is a good long-term investment.
You need to ask your financial institution as to what you can do with your ADR holdings, now that Trump black listed some Chinese stocks. It is not a great thing that happened here. This stock still trades in Hong Kong. It's been a giant disappointment. It would make sense for it to do well…