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Mobile TeleSystems (MBT) is a great opportunity for a dividend-seeking investor. The company has active dividend policy and currently offers the yield of approximately 9.7% at the price of $8.95. In my opinion, this is one of the best picks for dividend portfolio, because telecom business allows company to sustain its profits while MTS is building the businesses in other industries.
Mobile TeleSystems is the largest telecom company that operates in Russia and CIS. It has more than 80 mln clients (which is about 50% of population in countries represented). The company develops various new business activities including banking, retail, entertainment, cloud and digital technologies.
Recently Goldman Sachs named Russian rouble the best growing currency of 2021. Rising oil prices might support the currency, moreover, it still traded with 15% premium to January 2020 levels. However, there are a lot of political risks, which can drive USD/RUB exchange rate higher in next months. All facts considered, it is a risky, but high-potential investment opportunity.
Business Description
The key aim of MTS is stable high-yield dividends. Its sustainable telecom business allows to develop new projects and create unique ecosystem for its customers. Wireless segment was the main growth driver of the company in recent years. Nowadays wireless telecom market is already saturated, therefore MTS develops the new business segments. Besides, 5G technologies might create new growth opportunities for the company.
The wireless telecom industry is Russia presented by 4 major companies and MTS is the biggest one among them with about 30% of the market. There are
