The post Best Telecommunication Stocks Right Now by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.
The telecommunications industry includes a range of companies that provide residential and commercial communications solutions. It could be a good time to invest in the sector — operations have expanded in recent years. Check out our guide to learn more before you invest. We’ll also introduce you to some of the best telecommunication stocks worth watching.
Quick Look at the Best Telecommunication Stocks:
- AMT
- LBRDA
- LUMN
- T
- AMOV
Contents
- Quick Look at the Best Telecommunication Stocks:
- Overview: Telecommunication Stocks
- Best Online Brokers for Telecommunication Stock
- Features to Look for in Telecommunication Stock
- Bolster Your Investments
Overview: Telecommunication Stocks
At its root, any type of telecommunications system has 3 essential parts:
- A transmitter that receives information and converts it into a signal to travel over a long distance.
- A transmission medium or channel that carries the signal to its destination.
- A receiver that accepts the signal and converts it back into useful information for the receiving party.
The 1st type of telecommunication most investors think of is cell phones and 4G or 5G cellphone service. Cellphones do make up a major segment of the telecommunication market, but other products and services telecommunications companies offer include landline service, broadband internet services, cable television and satellite television.
Continued growth in the telecommunication industry makes it attractive for investors. Many telecommunications companies also offer hot stocks under $10 — a great choice if you’re a value investor.
Best Online Brokers for Telecommunication Stock
You need to open an account with a brokerage firm whether you’re searching for long-term telecommunications giants or looking to pick up a few stocks under $5.
A broker is a person or company that you authorize to buy and sell assets on your behalf. You’ll need a broker before you can start choosing stocks and funds because the general public can’t buy or sell stocks directly.
Consider our top choices below when you’re ready to choose a broker.
Claim Exclusive Offers
get started
securely through CenterPoint Securities’s
website
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
Best For
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
Try Free for 90 Days
securely through Magnifi’s
website
Magnifi is an intelligently designed marketplace that allows investors to access data-backed information about various investment opportunities. The company combines standard brokerage tools with artificial intelligence (AI) to promote financial competence. Magnifi distinguishes itself from the crowd by offering an AI-powered search feature and an AI-powered investment assistant. Magnifi offers a technology-forward platform that aims to promote confident and capable long-term financial investments.
Best For
- Long-term investors
- Individuals interested in personalized assistance
- New investors that are eager to learn how to start investing
- Access to an AI-powered investing assistant with a Magnifi Personal account
- Commission-free investing
- Over 15,000 possible investments
- Available mobile application
- Limited methods of communication with customer service
get started
securely through Robinhood’s
website
Robinhood is a broker designed for traders who want a simple and easy-to-use platform. It takes out all the bells and whistles that can be confusing to the modern day trader, serving as the perfect place for beginners to learn the markets. The interface is intuitive and easy to master, streamlined to ensure you don’t get distracted as you build a portfolio. Though advanced traders might like more thorough analysis tools, Robinhood gives you everything you need to start trading and learn the ropes.
Best For
- Beginner traders
- Mobile traders
- Streamlined, easy-to-understand interface
- Mobile app with full capabilities
- Can buy and sell cryptocurrency
- Fewer analysis tools than most
get started
securely through Interactive Broker’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
get started
securely through Webull’s
website
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
Best For
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
get started
securely through Charles Schwab’s
website
Charles Schwab is a solid choice for traders of all skill levels. It offers full access to the U.S. equity and options markets as well as 30 international markets. Traders can create a diverse portfolio with $0 commissions and no account minimums. Schwab’s margin trading is expensive but Schwab makes up for it with affordable futures and options trades, along with a comprehensive mobile offering.
Best For
- 3 trading platforms perfectly in sync makes matching your platform to your skill level a snap
- Excellent futures trading education for new traders
- $0 account minimum means anyone can start trading
- Wide range of available assets to trade, including futures and 30 global markets
- SmartStreet Edge platform is powerful enough for advanced traders, yet easy enough for new traders to utilize
- Unique educational resources (like infographics and podcasts) make learning fun
- Margin rates are more expensive than competitors
- More limitations on available margin than competitors
- Expensive mutual funds
get started
securely through TD Ameritrade’s
website
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
Features to Look for in Telecommunication Stock
Knowing how to evaluate telecommunications stocks can help you choose the right investments for your goals. Here are a few characteristics to look for when you begin.
- An earnings per share value that indicates the company is profitable: You can calculate a company’s earnings per share (EPS) value by dividing its current revenue minus dividends by the company’s current number of outstanding shares. Many telecommunications companies have huge operating expenses, so these types of companies may not show the sky-high annual profit that other companies do. Look for stocks with a positive EPS value — this indicates the company remains profitable.
- A safe dividend yield: Many investors look to the telecommunications industry for dividend payments to create a passive stream of income. While telecommunications corporations often offer dividends (that are sometimes quite high), you should only invest your money in companies that can sustain these dividends.
Don’t only look at the dollar amount the stock pays out per year or per quarter when you compare stocks. Instead, look at the company’s dividend yield. The dividend yield is calculated by dividing the company’s annual dividend by its current share price. Be wary of stocks that offer a dividend yield above 10%. This may indicate that a dividend cut is coming soon.
- A company that pays attention to shifting technology: Technology is shifting at a faster rate than ever before and consumers expect phone and internet providers to keep up. From investing in 5G technology to using satellite technology to expand television services to areas where cable television isn’t available, look for companies that focus on growing communications technology.
Bolster Your Investments
Investing in telecommunications stocks can be a great way to shore up any stock portfolio. You’ll find great dividend potential and promising high-tech products.
It’s important to remember that even large-cap telecommunication stocks aren’t risk-free investments. They should never make up the majority of your portfolio. Use telecommunication stocks to complement a larger portfolio of total market index funds, large-cap mutual funds and S&P 500 funds.
What are telecommunications stocks?
Telecommunications stocks are shares in companies that provide communication solutions to residential and commerical clients.
Answer Link
Where can I find brokers that handle telecommunicaitons stocks?
You can find telecommunications stock brokers on the list above.
Answer Link
Do telecommunications stock provide dividends?
Yes, telecommunications stock offer dividends.
Answer Link
The post Best Telecommunication Stocks Right Now by Sarah Horvath appeared first on Benzinga. Visit Benzinga to get more great content like this.
