We increased our position in a U.S. broadband and wireless provider that also owns a film studio, a streaming service and theme parks. The stock pays a 5.28% forward yield, well above the 3.8% telecom average. Its beta of 0.71 means its monthly returns have moved less than the broader market over the last 5 years. Dividends have grown at a 4% compound annual rate over the past 3 years, while the telecom peer group averaged -1%.
The company sells home internet, mobile plans and business connectivity, and its media arm produces films, TV networks and streaming content. Wireless is now its fastest-growing business, and the streaming service has turned a profit for 2 straight quarters.
The pressure sits in home internet. Fixed wireless and fiber rivals keep taking customers, and the company lost 144,000 broadband subscribers last quarter. A planned split into 2 public companies by mid-2027 adds another layer of uncertainty.
Adding to this holding in the Best Communication Dividend Stocks Portfolio reflects a high, well-covered yield at a low valuation. The stock pays more than most telecom peers, has raised its dividend every year for nearly 2 decades and moves less than the market. That combination fits a portfolio built around dependable income from the communications sector.
