5G will help your top telcos rebound

Article Excerpt

AT&T and Verizon have both dropped since the start of 2022, mainly because rising interest rates have prompted income-seeking investors to buy bonds instead. Higher rates are also making it more expensive for them to build out their new ultrafast 5G wireless networks. We feel the spread of 5G service will help them attract more customers, and prompt existing users to upgrade their smartphones. That, in turn, will fuel their long-term revenue growth and give them more room for dividend hikes. AT&T INC. $18 is a buy. The company (New York symbol T; Income Portfolio, Utilities sector; Shares outstanding: 7.1 billion; Market cap: $127.8 billion; Price-to-sales ratio: 1.0; Dividend yield: 6.2%; TSINetwork Rating: Average; www.att.com) is the largest wireless carrier in the U.S., with 210.7 million subscribers. It also has 5.5 million traditional phone customers and 15.5 million high-speed Internet users. As well, AT&T sells wireless and satellite TV services to 21 million users in Mexico and Latin America. The company’s revenue rose 12.9%, from $160.55…