Telecom Stocks Are An Attractive Buy

Posted by D4L | Saturday, January 05, 2013 | | 0 comments »

Everywhere you go, people are glued to their cell phones. It has reached the proportions where often one sees a young couple walking down the beach hand in hand, while their other hands hold on to their cells, talking to other people! Jokes aside, 2013 will be an exciting year filled with opportunities for the telecom industry. Robust growth of wireless coupled with plump dividend yields add up to a solid fundamental case and low-risk. Dividend investors have been looking towards the telecom industry in search of companies with good growth prospects. Investors have been attracted by inelastic demand for wireless products, combined with dividend yields above 5%.

With the global Internet traffic expected to quadruple by 2015, and in five years mobile broadband traffic will be 35 times current levels, now is the best time to get into the sector. The cloud and monetizing data are two big opportunities for telecom. With the changing business environment enabled by mobile and other technologies, the enterprise segment is ready for development.

Source: Motley Fool

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