Telecom stock advice

Hey guys

I’m thinking of getting a telecommunications company into my portfolio (long term). I have four on my watchlist, but haven’t decided yet which to go with.

  1. Deutsche Telekom (DE) - one of the biggest in the world I can invest in through Bux, dividend isn’t bad either (but higher tax on the div because it’s Germany)
  2. KPN (NL) - because of its big market share in NL and not bad dividend; seems like one of these pretty safe and steady stocks to buy and hold forever, or am I mistaken? Dutch Bux users might be more familiar with this one.
  3. Orange (FR) - biggest dividend of the four, although again higher tax on it compared to the previous two. The stock itself seems to be in a permanent decline though. But not sure how important that is for a defensive dividend stock like this one.
  4. AT&T (US) - high dividend, low tax, huge company. What’s not to like? Only reason I’m not sure is I am already very heavy on US stocks in my portfolio, maybe a euro stock would be better…

Thoughts?

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Hi @yohhst

I should choose for KPN. I had at&t and I loved their dividend. But they will cut it in 2022 with 50%.

Kpn is stable and they pay also dividend twice a year. They don’t grow that much each year, but it is an save one if you like passive trading.

Why I bought KPN is the reason that they pay you dividend twice a year. (0,13 € ) a year. And they are an takeover candidate. So if someone will buy KPN then they buy also the stocks and that is good for your wallet. :+1::grin:

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@Cornel thanks for the thoughts.

About AT&T: I did think about the WarnerMedia spinoff too, and the effect on the stock price and dividend dropping.

Yet on the other hand it’s kinda an exciting prospect to me. AT&T will be able to focus on their core business. And shareholders will get shares of the new media company when WarnerMedia spins off and merges with Discovery. I think they could be a very strong contender in the streaming wars. HBO and Warner Bros are great brands with nice back catalogues, so I can imagine they could do very well (even though they’ll have high debt). Unless everyone is sick and tired of streaming and TV by then.

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You never know, haha!

I have Orange in my wallet. Bargain and big dividend good profits and really big investments in fiberglass (glasvezel) and they have a plan to grow big in Africa like Algeria so best price and dividend and a lot potential the dip was caused by some goodwill reduction but overall a real good stock

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Otherwise the big provider Deutsche Telekom is very reliable and I want to introduce Verizon IMO the best provider in the USA IMO

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This is no advice but I have a position in Orange. Why?

A few of my reasons are that, like @DaveyV19 said, they pay a nice dividend. They also have a proper free cash flow. Their revenue has been stable, while earnings have been increasing.

image
^ Source Yahoo Finance

From technical point of view I’d like to see the stock holding ~current level which imo could be the first sign of trend reversal. If not invalidated, proceed to try and push towards the June gap maybe?

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@Jim
I agree I think they are undervalued big time. I have a position aswel in orange. Very stable stock. They pay this Year an interim dividend and final dividend in total 9% yield well I think an almost certain 9% profit is a very welcome for a defensive stock with a very stable track record.

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@Jim @DaveyV19 cheers guys, Orange looks very good indeed. :v:t2:

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