One of the most important sectors that make up equities are telecoms. These are mostly companies in charge of giving the fixed and mobile phone service to users. But in recent years they have opened up new lines of business linked to new technologies. Internet access service, wi fi, television or computer packages are some of them. They are not like before and at the moment they present various businesses that are sometimes confused with the latest generation products.
Of course, these companies are an indispensable piece in the portfolio of securities of any small and medium investor. With all certainty that you yourself will have invested your savings more than once in a company of these characteristics. Its specific weight in some equity indices is very relevant. Above other more traditional sectors. To the point that it is always on the lips of most analysts and financial intermediaries. Telecom companies have a very important power of suggestion to see you involved in their share purchase and sale operations. Do you want to know the reason for these performances?
From now on we will try to show you a little better what the behavior of the so-called telecos is. So that you can act in the markets with greater protection and security in all the movements that you formalize from now on. You should know that telecommunications is a sector that is present in all the stock exchanges of the world. With an uneven intensity depending on the equity market that you select for each occasion.
Telecos: its presence in Spain
The telecommunications sector is represented on the Spanish stock market, but with very special characteristics that differentiate it from other recruitment places. It is dominated by the almost absolute dominance of Telefónica. There is life beyond this company, but under very limited proposals. In some, even very irrelevant and listed on the secondary stock markets. With a very small recruitment volume. With few titles moving from one hand to another. Through small businesses that are hardly known to small investors.
If it is your intention to invest your savings in this sector, you should bear in mind that the proposals on the Spanish stock market are frankly a minority. Even with Jazztel away from the daily quotes. That is why it is not surprising that how, on the other hand, it happens in other financial markets, some of them within your environment. In this way, you will have less trouble conforming your decision from now on.
Telefónica is the jewel in the crown
We are talking about one of the great values of the national stock market. Not surprisingly, it is included within what they are the blue chips or great values. Together with companies such as Iberdrola, Repsol, BBVA or Banco Santander. Come on, the heavyweights of the Ibex 35. Well, Telefónica moves so many titles every year, like almost the rest of the index. With many investors interested in buying or selling their shares at any time of day.
The price of its shares currently moves in a range that ranges between 8,50 and 10 euros per share. But recently it has reached levels close to 15 euros. Therefore, and according to some analysts, it has a very wide revaluation potential. Of course, above that of other securities on the Spanish stock market. In addition, it is a stable value that rarely generates high intensity corrections. Not much less crashes above certain percentages. Like for example, beyond 5%.
Another advantage of contracting the shares of one of the benchmark telecos on the European scene is the high yield on its dividends. Because in effect, Telefónica is one of the listed companies that best treats shareholders for this remuneration concept. With a return on savings of up to 7%. One of the highest in Spanish equities. Its shareholders are on the highest list of the best paid in recent years. Through two annual payments made to the company in the months of June and November. With a payment per share of around 0,40 euros.
European telecos
The offer generated by European equities with respect to this class of companies is also very interesting. One of the ones with the best technical aspect at the moment is Vodafone. But others are also present such as Orange or Deutsche Telecom. With interesting prospects for the coming months. In either, both companies can be recipients of the purchase of shares on your part. Or at least so that they are part of that list of actions that your portfolio will have from this moment on.
It is a sector that stands out for being very dynamic. Not surprisingly, it is one of the most sensitive to develop any corporate move. As it has been developing since the past decade. With new acquisitions or mergers that can be an excellent opportunity for you to open positions in companies affected by these business processes that have a high impact on financial markets.
When it comes to the US stock market, of course these kinds of companies are also present. In a much larger number than in the European one. But with the great disadvantage that they will be less known to you. To the point that you haven't even heard of them named in your long career as a small investor. It is an incident that will make you absent yourself from these markets that are further away from your own environment. As in the case of Spain and the closest countries.
Characteristics of these values
The telecos have some hallmarks that will be very recognizable for all savings. Not from the fundamental point of view, but from the technical point of view. Not in vain, it will be very useful so that you can operate with these values with some success. And of course more guarantees to optimize operations in each of the financial markets to which your assets are directed.
- The volatility of their prices has decreased in recent years as a consequence of the stability in its business lines. With results in your business accounts with more and more benefits. Giving added value to your quotes.
- They are more open to opening of new businesses. Aspect that gives these companies a real value in their quotes. In some cases, even doubling their price compared to what they were trading for just a few years. Even with capital increase operations.
- Corporate movements is another of its main hallmarks. It is very frequent business operations between group of companies are really high. Of course, with greater intensity than in the other sectors of the international stock market. They are, in short, securities that are very active.
- Although you have many alternatives to invest your savings in the telecom sector, you will have more problems in national equities. With much more limited proposals in the other countries. Although you can save some money through its most competitive commissions.
- Today, it is not considered a higher risk sector. These performances are already history and refer to other periods. As you can see by analyzing the prices of the last decades. You have great security if you open positions in some of its securities.
- They reflect the situation of a sector in clear expansion. With very regular movements that boost the prices of its shares. For an investor profile that ranges from the most aggressive to those seeking greater stability to invest their assets.
- They can be part of a fairly balanced investment portfolio. With the addition that it can give it a more bullish implication so that it materializes in larger capital gains. Its average annual yield ranges between 5% and 10%, depending on the results of each exercise.
Are they recommendable in investment?
Of course, the telecos must be a very important part of your movements in the equity markets. With an exposure that in some situations can become aggressive. With a term of permanence that is aimed at the medium and high periods.
It is no longer a recommended value for speculative operations. As a consequence of the important shortening in differences between their prices their maximum and minimum prices in the same trading session. So with this background, you will have less trouble achieving your goals. Although they will require a longer period of time in terms of their permanence,
Other of its main characteristics is the one that has to do with its volume of hiring of titles. It is really high, continuously changing many stocks in the financial markets. Not in vain, you must bear in mind that these companies present one of the higher levels of liquidity of all bags in general. You can enter and exit their positions with complete normality. So that you can formalize operations at any time and at the times that seem most appropriate to you.