American Tower (NYSE:AMT)
American Tower owns and operates more than 220,000 cell towers throughout the U.S., Asia, Latin America, Europe, and the Middle East. It also owns and/or operates 25 data centers in eight U.S. markets after acquiring CoreSite. On its towers, the company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for more than half of its total revenue in 2021. Outside the U.S., American Tower’s greatest presence is in India and Brazil, where it operates roughly 75,000 and 19,000 towers, respectively. American Tower operates as a real estate investment trust.
Liberty Broadband (NASDAQ:LBRDA)
Liberty Broadband Corp. is a leading provider of communication services. It owns and operates a broad range of communication businesses such as Skyhook and GCI. GCI is Alaska’s largest communications provider, providing data, wireless, video, voice and managed services to its customers.
The broadband stock has a market cap of $36 billion and has an EPS of $1.23. It has a 52-week low of $80.14 and a 52-week high of $162.26. Liberty Broadband has high liquidity and trades more than 114,224 shares per day. It generated revenue of $14 million in 2019.
Lumen Technologies (NYSE:LUMN)
With 450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America, Lumen Technologies is one of the United States’ largest telecommunications carriers serving global enterprises. Its merger with Level 3 further shifted the company’s operations toward businesses (over 70% of revenue) and away from its legacy consumer business. Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has 4.5 million broadband customers.
Since the devastation of the coronavirus pandemic which saw the equity market collapse in March 2020, AT&T has been one of the blue chips that disappointed investors, basically going rangebound. However, there’s a chance that its robust entertainment portfolio could offer significant relevancy, especially if consumers are unwilling to watch movies on the big screen.
On the revenue front, AT&T has some work to do. In the fourth quarter of 2020, it generated $45.7 billion in top-line sales, down 2.4% year-over-year.
America Movil is the largest telecom carrier in Latin America, serving about 280 million wireless customers across the region. It also provides fixed-line phone, internet access, and television services in most of the countries it serves. Mexico is the firm’s largest market, providing about 40% of service revenue. Movil dominates the Mexican wireless market with about 63% customer share and also serves about half of fixed-line internet access customers in the country. Brazil, its second most important market, provides about 30% of service revenue. Movil sold its low-margin wireless resale business in the U.S. to Verizon in 2021 and now owns a 1.4% stake in the U.S. telecom giant. The firm also holds a 51% stake in Telekom Austria and a 20% stake in Dutch carrier KPN.
|Vol / Avg.- / -||Mkt Cap-|
|Day Range- - -||52 Wk Range- - -|
The telecommunications industry includes a range of companies that provide residential and commercial communications solutions. It could be a good time to invest in the sector — operations have expanded in recent years. Check out our guide to learn more before you invest. We’ll also introduce you to some of the best telecommunication stocks worth watching.
Quick Look at the Best Telecommunication Stocks:
Overview: Telecommunication Stocks
At its root, any type of telecommunications system has 3 essential parts:
- A transmitter that receives information and converts it into a signal to travel over a long distance.
- A transmission medium or channel that carries the signal to its destination.
- A receiver that accepts the signal and converts it back into useful information for the receiving party.
The 1st type of telecommunication most investors think of is cell phones and 4G or 5G cellphone service. Cellphones do make up a major segment of the telecommunication market, but other products and services telecommunications companies offer include landline service, broadband internet services, cable television and satellite television.
Continued growth in the telecommunication industry makes it attractive for investors. Many telecommunications companies also offer hot stocks under $10 — a great choice if you’re a value investor.
Best Online Brokers for Telecommunication Stock
You need to open an account with a brokerage firm whether you’re searching for long-term telecommunications giants or looking to pick up a few stocks under $5.
A broker is a person or company that you authorize to buy and sell assets on your behalf. You’ll need a broker before you can start choosing stocks and funds because the general public can’t buy or sell stocks directly.
Consider our top choices below when you’re ready to choose a broker.
Features to Look for in Telecommunication Stock
Knowing how to evaluate telecommunications stocks can help you choose the right investments for your goals. Here are a few characteristics to look for when you begin.
- An earnings per share value that indicates the company is profitable: You can calculate a company’s earnings per share (EPS) value by dividing its current revenue minus dividends by the company’s current number of outstanding shares. Many telecommunications companies have huge operating expenses, so these types of companies may not show the sky-high annual profit that other companies do. Look for stocks with a positive EPS value — this indicates the company remains profitable.
- A safe dividend yield: Many investors look to the telecommunications industry for dividend payments to create a passive stream of income. While telecommunications corporations often offer dividends (that are sometimes quite high), you should only invest your money in companies that can sustain these dividends.
Don’t only look at the dollar amount the stock pays out per year or per quarter when you compare stocks. Instead, look at the company’s dividend yield. The dividend yield is calculated by dividing the company’s annual dividend by its current share price. Be wary of stocks that offer a dividend yield above 10%. This may indicate that a dividend cut is coming soon.
- A company that pays attention to shifting technology: Technology is shifting at a faster rate than ever before and consumers expect phone and internet providers to keep up. From investing in 5G technology to using satellite technology to expand television services to areas where cable television isn’t available, look for companies that focus on growing communications technology.
Bolster Your Investments
Investing in telecommunications stocks can be a great way to shore up any stock portfolio. You’ll find great dividend potential and promising high-tech products.
It’s important to remember that even large-cap telecommunication stocks aren’t risk-free investments. They should never make up the majority of your portfolio. Use telecommunication stocks to complement a larger portfolio of total market index funds, large-cap mutual funds and S&P 500 funds.
What are telecommunications stocks?
Telecommunications stocks are shares in companies that provide communication solutions to residential and commerical clients.
Where can I find brokers that handle telecommunicaitons stocks?
You can find telecommunications stock brokers on the list above.
Do telecommunications stock provide dividends?
Yes, telecommunications stock offer dividends.