This Stock Is the No. 1 Telecom Buy

• Report this Comment On August 20, 2010, at 8:34 PM, plange01 wrote:

  vz is a great stock but not worth paying over $27 a share.these high dividend stocks tent to trade in a tight range and at the moment vz is close to its top...

• Report this Comment On August 21, 2010, at 1:47 AM, actionjo wrote:

  AT&T is the real number one telecomm buy, though it doesn't have 4 stars or more, it does have a slightly higher dividend yield and a much greater track record. AT&T still generates a ton of cash from the iPhone and has the only iron clad, truely tested smartphone network.

• Report this Comment On August 23, 2010, at 1:22 PM, Veritas1010 wrote:

  For the price, have to agree withactionjo; AT&T is better priced for the money at the moment despite its dependency on the I-Phone. As forVZ, have to agree withplange01 too, VZ is too high, it will come down - if you can time your purchase below $27 a share you'll get a good buy. With VZ, however despite its position in the US it has a very high payout ratio and other standard indicators call into question its long-term ability to keep the high dividend payout. Remember, Verizon Wireless (its cash cow if you will) is owned 45% by Vodaphone (VOD). The time is soon near div.'s will have to be paid out to VOD with long-term debt paid down by the wireless division. Where is this $$ to come from in a overly mature domestic market in a long term recession???

  Better play on VZ is VOD. Or for diversification and greater growth (and risk) Spain's Telefonic (TEF).

• Report this Comment On August 27, 2010, at 12:37 PM, forest1 wrote:

  As someone who is counting the days until my contracts with VZ are finished (both personal and work), I could not buy VZ due to really poor customer service and poor policy. I won't go into detail but can't buy stock when I can't stand the product/services.

• Report this Comment On August 27, 2010, at 1:29 PM, drborst wrote:

  I think picking a stock based on number of CAPS outperforms is a bad idea. The data table likely indicates that VZ is the most followed telecom on CAPS, and says nothing about its earnings potential.

  Also, I suspect you could make more money investing in a foreign telecom. That said, my holding in MTNOY hasn't done well yet.

• Report this Comment On August 27, 2010, at 3:45 PM, TMFBomb wrote:

  @drborst,

  Size and popularity certainly influences the number of people who rate stocks in CAPS. That's why it's important to look at the CAPS ratings, not just the sheer number of outperform, underperform, or total calls.

  That said, take all CAPS data for what it is...it's the collective wisdom of our community, for better or worse. I find the information to be a data point to consider along with the rest of my research on a stock.

  Fool on,

  Anand

• Report this Comment On August 28, 2010, at 9:05 PM, philkek wrote:

  Thanks Anand and other fools. Good MF article and thoughtful comments. I learn much from reading Motley Fool articles and member comments. I plan to continue this practice. As you say Anand, the CAPS data is a starting point with 4 and 5 stars hinting at the best opportunities for gains.

  Individual fools must do their own homework to improve chances for prosperity. Better Business Bureau warns people to investigate BEFORE you invest. I have owned 5 star CHL and made some profits. I'm still looking and learning. Fool on for profits.

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