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Top 50 Communication Services Stocks For April By Yield And Target Gains

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Includes: BCE, BZQIY, MBOFY, MBT, NZTCF, RNRTY, ROSYY, T, TEO, TLSYY, TTRAF, VEON, VIV, VOD
by: Fredrik Arnold
Summary

Overseas telecom firms remained at the top by gains this month as North American telcos were mid-bound in analyst 1yr. targeting.

Eight of top ten net gain Communications Services hailed from overseas (VEON, VOD, MST, VIV, TEO, BZQIY, TTRAF, & ROSYY). Their top 2 averaged 70.4% gains. while 2 North American.

Two North American firms, BCE, & T, averaged 19.4% gains to 2019. Seven price-upsides ranged 4.4%-100%, by TEO, VIV, T, BCE, MBT, VOD, & VEON, averaging 30.7% per broker targets.

50 top Communication Services stocks ranged in yield from 3.96% to 14.76%. Top ten, MBOFY, RNRTY, NZTCF, VOD, TEO, ROSYY, MBT, TTRAF, BZQIY & VEON, averaged 9.21% yield.

$5k invested in the lowest-priced five April top-yield Communication Services stocks showed 31.21% more net gain than from $5k invested in all ten.  Low price little dogs continued to lead communication services in April.

Actionable Conclusion (1-10): Analysts Predicted 6.5% To 112.8% Net Gains From Top Ten Communication Services Stocks To 2019

Seven of ten top gaining Comm Services stocks, based on analyst 1-year target prices, were in the top ten dividend-yielders for the coming year (as tinted in the chart above). Thus, the yield-based forecast for Comm Services, as graded by Wall St. wizards, was 70% accurate.

Projections, based on estimated dividends from $1000 invested in the thirty highest yielding stocks and their aggregate one year analyst median target prices, as reported by YCharts, created the 2018-19 data points. Note: one year target prices by lone analysts were not applied. Ten probable profit-generating trades projected to April, 2019 were:

VEON (VEON) was projected to net $1,127.83, based on dividends, plus mean target price estimates from sixteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 113% more than the market as a whole.

Vodafone Group (VOD) was projected to net $280.80, based on median target price estimates from three analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 48% more than the market as a whole.

Mobile Telesystems (MBT) was projected to net $252.54, based on a median target price estimate from seventeen analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 7% more than the market as a whole.

BCE Inc. (BCE) netted $200.99 based on dividends plus the median from price estimates by twenty-two analysts, less broker fees. The Beta number showed this estimate subject to volatility 67% less than the market as a whole.

AT&T (T) was projected to net $182.84, based on a median target price estimate from twenty-one analysts, plus projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 61% less than the market as a whole.

Telefonica Brasil (VIV) was projected to net $152.71, based on dividends, plus median target price estimates from fourteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 40% more than the market as a whole.

Telecom Argentina (TEO) was projected to net $106.61, based on dividends, plus median target price estimates from ten analysts, less broker fees. The Beta number showed this estimate subject to volatility 15% more than the market as a whole.

Bezeq The Israeli Teleco (OTCPK:BZQIY) was projected to net $93.56 based on dividends only, less broker fees, with no target price estimates from analysts. The Beta number showed this estimate subject to volatility 3% less than the market as a whole.

Telstra (OTCPK:TLSYY) was projected to net $84.51, based on dividends, less broker fees. The Beta number showed this estimate subject to volatility 17% less than the market as a whole.

Rostelecom (OTCQX:ROSYY) was projected to net $65.19, based on no target price estimate from analysts, just projected annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 51% more than the market as a whole.

Average net gain in dividend and price was estimated at 25.49% on $10k invested as $1k in each of these ten stocks. This gain estimate was subject to average volatility 13% more than the market as a whole.

Top 50 Communication Services By Yield Represented Only The Telecom Industry In January

Yield (dividend / price) results from YCharts April 11, verified by YahooFinance, showed fifty stocks from just one of two Communication Services sector Industries producing the actionable conclusions for this article. The Pay TV industry was not represented.

The Dividend Dogs Rule

Stocks earning the "dog" moniker exhibited three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More precisely, these are, in fact, best called, "underdogs".

Top 50 April Communication Services Equities By Yield

Actionable Conclusion (11-20) Yield Metrics Selected 10 Top Communication Services Stocks

Top ten Comm Services stocks selected 4/11/18 with top yields represented one of two industries constituting the sector: (1) telecom services [10 listed]; (2) pay tv [0 listed].

Top yield communication services stock, VEON (VEON) [1], was followed by Bezeq The Israeli Teleco (OTCPK:BZQIY) [2]; Telstra (OTCPK:TTRAF) [3]; Mobile Telesystems (MBT) [4]; Rostelecom (OTCQX:ROSYY) [5]; Telkom Argentina (TEO) [6]; Vodafone Group (VOD) [7]; Spark New Zealand (OTCPK:NZTCF) [8]; Reunert (OTCPK:RNRTY) [9]; M1 (OTCPK:MBOFY) [10], to complete the roster of top ten April stocks by yield.

Actionable Conclusions (21-27): Seven Communication Services Stocks Showed 4.37% To 100% Upsides To April, 2019

To quantify top rankings, analyst median price target estimates provide a "market sentiment" gauge of upside potential. Added to the simple high-yield metrics, analyst mean price target estimates became another tool to dig out bargains.

Analysts Cast A 31.21% Advantage For 5 Highest Yield, Lowest Priced Communication Services Stocks To April, 2019

Ten top Communication Services stocks were culled by yield for their monthly update. Yield (dividend/price) results verified by YCharts did the ranking.

As noted above, ten top Comm Services stocks selected 4/11/18 showing the highest dividend yields represented one industry in the two industry sector scheme.

Actionable Conclusions: Analysts Predicted 5 Lowest-Priced of the Top Ten Highest-Yield Comm Services Dogs (28) Delivering 28.5% Vs. (29) 21.72% Net Gains by All Ten by April, 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Communication Services collection by yield were predicted by analyst 1-year targets to deliver 31.21% more net gain than $5,000 invested as $.5k in each of all ten. The very lowest priced Communication Services top-ten yield stock, VEON (VEON), was projected to deliver the best net gain of 112.78%.

The five lowest-priced Communications Services top yield stocks for April 11 were: VEON (VEON); Telstra (OTCPK:TTRAF); Spark New Zealand (OTCPK:NZTCF); Rostelecom (OTCQX:ROSYY); Bezeq The Israeli Teleco (OTCPK:BZQIY), with prices ranging from $2.30 to $6.44.

Five higher-priced Communications Services stocks for April 11 were: Mobile Telesystems (MBT); Reunert (OTCPK:RNRTY); M1 (OTCPK:MBOFY); Vodafone Group (VOD); Telkom Argentina (TEO), whose prices ranged from $9.89 to $31.14.

The distinction between the five low-priced dividend dogs and the general field of ten reflected Michael B. O'Higgins' "basic method" for beating the Dow. The scale of projected gains based on analyst targets added a unique element of "market sentiment" gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, since analysts are historically only 20% to 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.

See my instablog for specific instructions about how to best apply the dividend dog data featured in this article, this glossary instablog to interpret my abbreviated headings, and this instablog to aid your safe investing. --Fredrik Arnold

The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Stocks listed above were suggested only as possible reference points for your Communication Services stock purchase or sale research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Disclosure: I am/we are long T. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.