SA Asks: What’s the best telecom stock right now?

What’s the best telecommunications stock right now for investors?

We asked Seeking Alpha analysts Gen Alpha and The Value Pendulum for their picks.

Gen Alpha: Verizon (NYSE:VZ) is my top pick in the telecom space right now. It trades at a far lower P/E valuation than peers T-Mobile (NASDAQ:TMUS) and AT&T (NYSE:T). Meanwhile, its operating revenue, operating cash flow, and free cash flow were all up during Q1. VZ’s (NYSE:VZ) pending acquisition of Frontier Communications (NASDAQ:FYBR) greatly boosts its fiber footprint, making it a close number 2 to that of AT&T (NYSE:T). With a starting dividend yield of over 6%, investors are well-compensated for holding this telecom giant.

The Value Pendulum: Telekomunikasi Indonesia (NYSE:TLK) has a new $180M buyback plan that commences in late May and lasts for a year. Its guided dividend payout for FY25 was generous at 80%, which beat consensus by six percentage points. Capital returns are the most important investment criterion for telco-focused investors, and TLK has impressed in this area.

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