In the telecommunications industry, there's one stock to suit every investor. Here are 3 of the best on offer today!
Value
M2 Group Ltd (ASX: MTU) is the owner of brands such as Primus, Dodo, Eftel and Commander. Despite achieving an average annual total shareholder return (dividends plus capital gains) of 47.5% over the past five years, it currently trades on a forward price to earnings ratio of only 17! With a forecast dividend yield of 3.3%, investors may still be overlooking M2. Although its debt to equity ratio has climbed to 89%, it's made good use of all its capital. Following a hugely successful acquisitive growth strategy in recent years, management are likely to again look to acquire businesses to grow its already large customer base through a broad range of utility services such as power and gas, insurance and more.
Growth
iiNet Limited (ASX: IIN). Powering over 1.8 million services nationwide, this Western Australian garage start-up has grown into our country's second-largest DSL provider. And its share price has responded, quadrupling in the past five years. In 2015 however analysts are forecasting a healthy boost in earnings per share and a juicy fully franked dividend of 3.3%.
Income
Following a spectacular share price rise last year, Telstra Corporation Ltd (ASX: TLS) was able to rally above its previous 13.5-year high just a few weeks ago – it hasn't looked back since. Although the telco giant is expected to notch up healthy growth in Asia over the coming years and is expected to pay a 30 cents per share fully franked dividend in 2015; at over $6.60 its share price now looks quite demanding. Therefore investors should wait for a meaningful pullback in price before hitting the buy button.
