Telecommunications are woven into the fabric of our lives, supporting us faithfully throughout our daily routines. It’s no wonder that so many investors see telecom stocks as safe bets.
The telecom & communications industry includes a diverse group of businesses that provide phone, video, and internet services across traditional landlines, broadband, and wireless networks.
Whether you browse an online store, watch a video, or take a personal/work call, telecommunications play some part.
Even with the telecom industry struggling of late, there are still some great investment opportunities.
This interconnectedness draws the interest of investing experts looking for solid long-term positions.
Let’s take a deeper look at some of the best telecom stocks to see if they suit your investment portfolio.
Best Telecom Stocks to Buy Now
Comcast (NASDAQ: CMCSA)
Comcast is a telecommunications company based out of the Philadelphia area.
It is the most popular pay-TV and residential internet provider in the United States, with the company’s most significant source of revenue and earnings stemming from this sector.
It also owns NBCUniversal, a media behemoth with a TV network and Peacock streaming service.
Despite users moving away from video and voice services, Comcast saw a boon in its number of users during 2021.
Comcast also owns Sky, a leading pay-TV operator in Europe, which it purchased in 2018.
Sky enables NBCUniversal to create a direct-to-consumer streaming service in Europe, and Comcast’s NBCUniversal is perfectly positioned to support Sky’s future expansion on the continent.
Comcast’s record highs ended in the fall of this year as share prices have slipped.
Revenue and earnings per share exceeded goals this past quarter, but income and profit margin are down.
Being such an industry giant, it’s doubtful that anything will keep Comcast from climbing back up in the near future.
Telephone & Data Systems, Inc. (NYSE: TDS)
Telephone & Data Systems (TDS) is a leading provider of several products and services pertaining to wired and wireless communications.
These services reach more than six million customers across the country.
TDS represents four different companies that each address a unique service.
Of these companies, USCellular is the fifth-largest wireless carrier in the United States and is currently looking to benefit from the big 5G push.
TDS Telecom delivers high-speed internet, TV, and phone services to over one million households in the Midwest.
OneNeck IT Solutions LLC offers all levels of IT services and managed services.
Suttle-Straus is a printing company that first opened its doors over 100 years ago.
With so much under its umbrella, Telephone & Data Systems can offer stability even if a particular market is struggling.
Telephone & Data Systems beat its revenue and earnings per share goals for the fall of 2021 despite the overall telecom slowdown.
Share prices are pretty stagnant at present but are primed to grow at any time.
Verizon Communications (NYSE: VZ)
Verizon Communications is the United States’ largest wireless company and is based in New York.
The company has over 140 million subscribers in 150 countries worldwide with its cell phone service.
Verizon’s subscription-based mobile services all but ensure a steady cash flow for the company’s foreseeable future.
The recent release of 5G networks only bolsters the company’s place on top of the data market.
Furthermore, Verizon’s reach extends beyond mobile data to information, entertainment, and technology.
With such an impressive cash flow, the company can provide shareholders with an attractive dividend yield of 4.83%.
Although up over the last five years, Verizon’s stock has been more or less trading sideways of late.
With the likelihood of this wireless behemoth reclaiming shares down the road, there’s likely never a bad time to invest in some shares.
Best Value Communication Stocks
Vodafone Group (NASDAQ: VOD)
Vodafone is a leading telecommunications enterprise with a strong presence on the Asian and African continents.
The company also represents the largest 5G network in Europe, covering 21 countries and growing fast.
Over 300 million individuals use this wireless network at present.
Furthermore, Vodafone adds more than 27 million fixed broadband and 22 million TV customers to its list of achievements.
Vodafone also has a strong desire for sustainability, powering Europe’s network with 100% renewable energy.
Thanks to making leaps and bounds through its global vision, shares have turned upward since the beginning of the year.
This may be a great time to add Vodafone to your portfolio as things take back off.
ViacomCBS Inc. (NASDAQ: VIAC)
ViacomCBS Inc. is a global multimedia corporation that focuses on creating premium content and experiences for people all around the world.
The company provides cable networks, content development and distribution, television stations, and digital streaming services to the masses.
It is probably best known for its ownership of CBS, Paramount Pictures, MTV, and Nickelodeon.
Although a significant player in the industry, ViacomCBS refuses to sit back on its laurels.
ViacomCBS announced earlier in December that it has formed a global partnership with CJ ENM to bring content to the Asian continent for the first time.
Earlier this year, the telecom giant partnered with Charter Communications as well.
Charter’s products are branded under the name Spectrum and have a subscriber base of over 31 million people.
This desire to grow places ViacomCBS as a potentially strong long-term investment option even when share prices are down at present.
Fastest Growing Telecom Stocks
American Tower (NYSE: AMT)
American Tower is a REIT that controls a vast communications infrastructure in several countries around the world.
The company boasts more than 219,000 towers throughout North America, Asia, Europe, and Africa.
American Tower profits by renting out space on these towers around the world.
Mobile providers then install the necessary technology to reach their customers in the surrounding area.
With no end to the demand for mobile data in sight, American Tower is well-positioned to profit with this large number of towers.
American Tower is primed to help companies expand their 5G networks, which necessitate the installation of new towers and equipment.
The company’s infrastructure is ideally suited for deploying 5G networks in less populated suburban and rural locations.
Thanks to a steady increase in tower use, American Tower stock has seen a fairly steady rise over the last five years.
Shareholders also benefit from a 2.25% quarterly dividend.
Altice USA Inc. (NYSE: ATUS)
Altice USA serves the American telecommunications space through the power of connectivity.
The company has a far reach, extending from high-speed broadband to local news and wireless offerings.
It does so through eight different brands, each with a unique contribution to the overall picture.
Most of these services impact the East Coast, while others have a national reach.
Both Optimum and Suddenlink cater specifically to telecommunications, with high-speed internet and mobile packages.
Despite gains in revenue and astronomical increases across the board, share prices have been down of late.
Altice USA is ready for a boom, and grabbing shares now could put you in a great position to succeed.
Telecom Stocks With the Most Momentum
Roku (NASDAQ: ROKU)
Roku deals in the manufacture and distribution of popular streaming devices.
At present, the company edges out its competition as the most popular streaming device on the planet.
This is in no small part due to its affordability and ease of use.
Roku’s devices allow users to stream all their favorite services from just about anywhere.
The company isn’t stopping there and is constantly looking for new content to bring on board.
In addition, Roku is rapidly growing in the European market.
In December, it opened an office in Amsterdam to support the international growth.
Although down this year, Roku’s stock price seems to have reached its low point and is starting to trend back upwards.
This forward momentum looks to make Roku a valuable investment for the foreseeable future.
Liberty Broadband (NASDAQ: LBRDA)
Liberty Broadband owns several businesses that offer wireless, cable, video, and data to a range of consumers.
The company’s primary asset is Charter Communications, the second-largest cable operator in the United States.
Its reach extends all the way to Alaska, where Liberty has 100% ownership of communications provider GCI.
The Skyhook brand is a leader in mobile positioning with over a billion Wi-Fi and cellular locations.
Liberty saw a considerable boost to revenue from its third-quarter earnings but still barely exceeded its goal.
With the knowledge that it is on the fast track to growth, Liberty expects great things.
Share prices have been a wash over the last year, but such growth is bound to catch the eyes of investors soon enough.
Should I Buy Telecom Stocks?
Telecommunications has become an essential part of our daily lives.
Where 15 years ago many people didn’t own a cell phone, now we use telecommunications in just about everything we do.
The demand for faster internet and the growing number of internet-connected gadgets are two main themes driving growth in the telecom business.
Smartphones, wearables, and smart speakers are becoming more common, necessitating systems that can sustain several connections at once.
Edge computing is also increasing the demand for large-scale communication networks.
These make the industry a great candidate for traders looking for a low-risk area to invest in.
5G technology is quickly making its way through the world, further offering a reason to invest in this sector.
Even though things are sputtering a bit at the moment, there’s little doubt these stocks will bounce back and then some.
Where to Buy Telecom Stocks
If you’re ready to invest in telecom stocks, you’ll want to know where to start your search.
Most telecom stocks are well established and have a presence on major exchanges like NASDAQ and the NYSE.
Robinhood and Webull are incredible tools that make browsing these exchanges simple.
Robinhood features a simple interface that speaks to new and experienced traders alike.
The easy-to-navigate interface makes it easy to locate precisely what you’re looking for.
On the other hand, Webull brings more comprehensive tools for advanced traders to use.
Whichever you choose, the best telecom stocks are only a few clicks away!
Best Telecom Stocks: Final Thoughts
Any dominating telecom business that maintains solid budgetary discipline while using its competitive advantages is likely to continue to reward investors, whether through stock price appreciation, dividend hikes, or both.
Economic progress will continue to be aided by communication services and content.
Further developments in driverless vehicles, smart cities, and virtual reality will rely on continued improvements in network and website speeds.
Shareholders who purchase shares in leading communication firms and hold them for a long time will likely see significant gains.
Telecom Stocks FAQ
Check out these answers to popular questions about telecom stocks.
Which Telecom Stock Is Best?
It’s tough to go wrong with any of the telecommunications giants on this list, as these companies have already proven themselves and paved the way for success.
If you’re looking for something a little more budget-friendly, American Tower has the capability to see fast growth with the implementation of 5G across the country.
Is Telecom a Good Investment?
Telecommunications is here to stay and an integral part of our future.
As a result, investing in the companies that make telecom a reality are strong picks for long-term growth.
Is Verizon a Good Stock to Own?
Verizon is the largest wireless company in the United States and has been for several years.
The enterprise stays at the forefront of new technology (such as 5G) and continues to deliver on its claims.
How Do I Invest in Telecommunications?
Use this list of tickers to help narrow down the one (or ones) that speak to you the most.
From there, use a trading platform such as Robinhood to start your journey and make an investment.
Is VZ a 5G Stock?
Verizon is capitalizing on new 5G technology and looks to roll it out across the country in short order.
The company is one of a handful of wireless providers in the U.S. alone that are considered a 5G stock.
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