Hi this week I’ll be investing in Vodafone or BT as I would one of these on my portfolio, which would you guys pick? I have been researching for a month, I’m leaning towards Vodafone.
I’ve got both although I think Vodafone might see an increase in share price with some sell off they have planned. But BT has a bigger position in my portfolio as it’s is a fairly bigger dividend payer.
This is only because the share price has dropped from £5 to £1.70 and the dividend hasn’t changed much from 14p~ even though it probably should.
I’m unsure on Vodafone over the next few years but BT is looking to potentially have a bunch of investment in 5g and fibre, this would mean less profit, and potentially a cut or cease of the dividend to fund that development.
Completely agree with both statements. I think for me, BT is for the long run. it’s currently down for me about 8p per share.
Both have some hefty debts and require quite a bit of capital just to keep the lights on.
Some thoughts on telecoms from earlier in the year here:
https://sleepyinvestor.blogspot.com/2019/02/stock-analysis-telecoms.html
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Much higher level commentary but newer.
Again very high level and slightly older (August) but not a very rosy outlook for BT