The telecom industry has continuously
evolved and reinvented itself in response to technological advancements.
The wireless segment is currently its main source of revenues, and
AT&T (T) and Verizon (VZ), two of the largest players in the
industry, have expanded their product portfolio accordingly to include a
wide variety of products besides their legacy wireline services.
Due to the robust nature of the
industry, telecoms have traditionally been a safe haven for investors
looking for steady growth and stable dividends. On top of that, telecom
stocks also offer immunity from market swings: for example, Verizon’s
Beta value is 0.53, compared to AT&T’s 0.69.
Both stocks have a large number of
investors from the retirement and pension fund managers’ community.
About 57% of AT&T’s outstanding shares are held by institutions, out
of which almost 95% are held by investment advisors, pension funds and
insurance companies. Institutional ownership in Verizon is about the
same, with 59% of its total outstanding shares are held largely by a
shareholder base similar to AT&T’s. Read more.
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