Four telecom stocks for dividend and diversification play

Leading carriers on both sides of the U.S.-Canada border have reported solid revenue, earnings, and free cash flow growth in their most recent quarterly reports

Vikram Barhat 19 December, 2018 | 6:00PM

As markets continue to seesaw between hope and despair over the outcome of the US-China trade talks, major indexes appear set to end the year in the red. The best way for investors to deal with this seemingly unending market rodeo is to not pay any attention at all. Instead, they should explore longer-term growth stories that aren’t beholden to short-term macroeconomic headlines.

A good start could be to look at sectors that comprise companies whose offerings are an indispensable part of human existence. One of them is the telecommunications sector. Telecom companies provide essential services -- wireless, internet and cable – which people need in this digital age no matter where the stock market or the economy are.

Leading carriers on both sides of the U.S.-Canada border have reported solid revenue, earnings, and free cash flow growth in their most recent quarterly reports. Yet, their share prices and the overall sector performance appear to be telling a different story. For the year to date, the Dow Jones U.S. Select Telecommunications Index and the S&P Telecom Select Industry Index have seen total returns in U.S. Dollar terms of -4.5% and -2% respectively, while the S&P/TSX Capped Telecommunication Services Index has fallen close to 0.2% for the same period, as of December 16, 2018..

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Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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