With wireless and pay-TV markets looking saturated, buying more subscribers via acquisition and taking out costs is a logical strategy to further enhance market share and free cash flow generation. However, we believe T's large move into pay-TV trades near-term synergies for greater long-term strategic uncertainty. With wireless and pay-TV markets looking saturated, buying more subscribers via acquisition and taking out costs is a logical strategy to further enhance market share and free cash flow generation. However, we believe T's large move into pay-TV trades near-term synergies for greater long-term strategic uncertainty.
T and VZ are two giants operating in markets with extremely high barriers to entry. Market saturation, evolving media consumption habits and the rise of non-traditional competitors like Netflix and Google are all working together to pressure incumbent wireless, pay-TV and Internet providers. T has made a big bet on pay-TV and service bundling, two areas that we believe have fairly uncertain futures. VZ has remained focused on its wireless network while placing a relatively smaller bet on mobile video services, a crowded space but one that seems more likely to see substantially higher growth rates than traditional pay-TV going forward. While both companies' strategies will take years to play out, we are more in favor of VZ's approach given what we know today. However, retired investors seeking safe current income would do well holding either stock.
Source: Seeking Alpha
Related Articles:
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
AT&T Yields 5.6%, But Read This Before You Buy
Posted by D4L | Wednesday, November 18, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.