How to Balance Your Telcos

Article Excerpt

While telephone companies already have learned to live with long-distance competition, they now face local competition as well. New technologies such as Voice-over- Internet Protocol (VoIP) are a threat to BCE and Manitoba Tel in both long-distance and local service. We think both companies will prosper despite the competitive threats. Still, to lower risk, income-seekers should spread their utility-sector investments out among the three main segments of the Utilities economic sector — telephone companies, pipeline operators and electric companies. You should own phone stocks only if they are part of a balanced portfolio, and you also have diversification within the utilities sector. In addition, we advise against holding more than 10% of your portfolio in phone stocks. stocks…

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