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.
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