To start with, we should note that from the 12 highest-yielding companies in Standard and Poors 500 stock index 5 companies are telecoms. Telecom stock dividend paying yields range from 5% to 7% and are among the highest and safest in the market. However, although telecom companies in general are generous dividend payers, it should be noted that the landlines sector of the industry is losing clients and does not seem to have any kind of aggressive growth prospects. On the other hand the wireless sector of the industry continues to attract new customers and increase its market penetration to even superior levels of 100% through innovative new technologies that enable wireless providers to provide new services and attain new customers and more subscriptions from already existing customers.
For example some of the most efficient Telecom stocks out in the market are:
RIM ( Research in Motion)
RIM growth prospects can be seen as a firmly structured company ready for long term growth. for instance: earning per employee for the past two months has been $194,917. Revenue per employee for the past two months has been that of $1,137,556.
Another example of efficient stock is Loral Space & Communication
Earnings per employee was $184,119 for the last 12 months. Revenue per employee was $1,121,408 for the same period.
Revenue and earning per employee are good indexes to measure the efficiency of the company, thus the quality of stock an investor is buying
The future of telecom companies in security markets depends on their financial strength, efficiency and ability to attain aggressive growth. It seems for now that the best Telecom stocks will be that of companies that have the sufficient market penetration to realize the application of new technologies and it should be remembered that new technology comes without wires
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