Chart Watchlist: Telecom

I don't follow many other telecommunication companies. The other ones are too risky for me so I stay with the two largest carriers in the USA. These stocks have little or no capital gains. The moderate returns come from the dividends reinvested and dividend increases every year.

The graphs below shows share prices in the last 12 months. The companies highlighted in GREEN are what I consider to be more stable in earnings. The names that are BOLDED are what I consider high quality companies.
Telecommunication Services
T - AT&T, Inc.

VZ - Verizon Communications Inc.

S - Sprint Corporation

TMUS - T-Mobile US, Inc.

3 comments:

  1. AnonymousSeptember 5, 2016 at 9:09 PM

    Hello again. One more question. Just curious, why do you have Verizon (VZ) as one of your "supporting" positions and AT&t is highlighted green. I had both AT&T and Verizon. I kept my verizon and sold my AT&T, because I wanted to have less stocks. Do you not see long term potential growth in Verizon?

    Thanks again (love your blog, it's really helpful!)
    Shane

    ReplyDelete
  2. AnonymousSeptember 5, 2016 at 9:11 PM

    Oh one more thing. The reason I kept VZ and sold T is because I see that Warren Buffet has VZ and not T. I know, lame reason.
    Shane

    ReplyDelete
    Replies
    1. AnonymousSeptember 5, 2016 at 9:26 PM

      I consider AT&T higher quality because they have a longer dividend growth history (32 years vs 11). Also Verizon has a lot more debt than AT&T (77% Debt/Cap vs 47% Debt/Cap). I don't feel as comfortable with that much debt.

      Both are high quality in the end and I recommend holding both. I wouldn't have sold AT&T. I think it's a great stock.

      I don't expect both to grow substantially. These are steady utility-like companies with high yield low growth. I expect 2% dividend increases going forward.

      Delete

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