So, you want to get involved in the telecom trade but you don’t know where to start? The telecom sector can often feel like a tough field to get into: competition, regulations and products are constantly in flux and can throw investors for a loop. Luckily, Seeking Alpha has written an article comparing two of telecom’s biggest stocks in an effort to give prospective investors a better idea of how to invest in the field.
The article looks at Verizon and Telus, two of the largest telecom corporations in North America. Here is what you can expect from their guide:
Let us begin by looking at Verizon and Telus’ past performance. The chart below shows the stock prices between the two companies in the past 10 years. As we can see from the first chart, both stocks suffered decline during the Great Recession with Telus losing more than 50% of its value. The two stocks gradually returned to positive performance with Telus continued to trend higher since the dip in early 2016 and Verizon’s stock ended lower earlier this year before moving up again lately. Verizon’s stock produced a return of 13% in the past 10 years and Telus stock price ended up 30% higher than 10 years ago. Both companies were below the performance of S&P 500 index’s 64% If we factor in their quarterly dividends, both Verizon and Telus fared pretty well with a return of 86% and 103% respectively. Overall, Telus appears to be the better performing stock of the two in the past 10 years.
Any person who is interested in either getting into telecom stocks or are just looking for a new high yield dividend stock should take the time to check out this article. With many new and exciting products such as Apple’s new iPhone 8 and iPhone X coming into the market, not to mention the “strong competition” that forces these companies to innovate, they make for interesting investments.
Be sure to read the full article at seekingalpha.com.
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