My favorite Telecom stock is AT&T, this stock has potential growth and you probably know it has a high yield dividend. The stock is not in a great position to upgrade the dividend a ton, but the stock has been raising its dividend for 35 years in a row. The share price is 28.76 and the dividend is 2.08, which makes the yield 7.42%. This dividend will be able to be kept and increased in the future. The company does have a ton of debt.
The recent buy of Time Warner has caused the debt issue. The company will be able to pay off the 191 billion dollars in debt long term. I personally like the buy of Time Warner, because it provides diversity in their revenue. I like how AT&T is competing for the biggest Telecom company. Their market cap is 206 billion dollars. While the stocks payout ratio is unhealthy at 108%, I think when they pay off some more of their debt and 5G starts to become bigger the EPS will grow. This will create a more healthy dividend.
The share price has fallen from a 52 week high of 39.70 to a 52 week low of 26.08 and the price is currently at 28.76. This creates some growth opportunity, as I believe 20 years out the stock will be 50+.