The telecom scene is home to some pretty cheap dividend payers that can help pad your quarterly passive income stream. Undoubtedly, the days of high rates may be numbered. And if they are, investors may need to return to stock markets to score yields above the 4.5% level. The good news (for prospective investors) is that today’s American telecom stocks are under significant pressure for various reasons, including macro headwinds.
As rates fall, consumer pressures ease, and the next generation of connected devices go online, look for companies feeding the 5G (and beyond) wireless boom to find a way to gravitate higher again. Therefore, this piece will use TipRanks’ Comparison Tool to examine three Strong-Buy-rated telecom stocks that may make great value buys this season.
T-Mobile (NASDAQ:TMUS)
When it comes to telecom firms, it’s hard to name a company doing half as well as T-Mobile. The stock has risen more than 135% over the past five years, while some of its biggest legacy rivals have sunk deeper into the red. Better networks, lower prices, and perhaps buzzy promotions are key to increasing market share.
Though T-Mobile’s peers have been taking steps to catch up to the fast-running wireless king, T-Mobile is likely to continue leading the pack as it looks to expand its leading 5G wireless coverage further. Undoubtedly, T-Mobile remains the reigning king of 5G, and I don’t see anybody threatening the firm’s spot on the throne, at least not anytime in the near future.
You don’t simply boast a best-in-class 5G network overnight. It takes years, actually decades, of dedication and rampant investment. These years of wise investments have helped T-Mobile build a deep moat for itself. All things considered, I must say I share Wall Street’s enthusiasm and bullishness on the stock.
Moving ahead, T-Mobile seems to be positioning itself to offer better connectivity to cater to the next generation of (wireless) wearable devices. With recent partnerships combining the best of 5G and spatial computing (or mixed reality headsets), it’s hard not to view…
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