Telecom companies help in providing the required technology which connects the world. In the telecom sector, companies provide internet, television services, phone services, and the infrastructure which is needed to support the. The telecom sector is often seen as an attractive avenue for conservative investors who are seeking dividend-yielding stocks and companies with capital appreciation potential.

Verizon Communications Inc. (NYSE: VZ)

Verizon Communications Inc. (VZ)‎, is an American multinational telecommunications conglomerate that is also a corporate component of the Dow Jones Industrial Average and is one of the largest communication technology companies in the world. VZ is also the largest wireless carrier in the United States and produces a high gross margin in comparison to its competitors. While Verizon’s wireline business is as good nor as cheaper as the others, it is still taking steps to improve its position and divesting its assets over time.

On the records, Verizon’s debt situation is also well in check and relatively small in comparison to its peers such as AT&T. This stability in debt levels makes it attractive to investors who are assured of its relative safety as Verizon’s cash flow continues to keep exceeding its dividend payment. Which makes it highly unlikely that there will be any cash flow drop in the near future with the consistent state of its revenue.

AT&T Inc. (NYSE: T)

AT&T ‎(T) ‎is a diversified telecommunications company that possesses a history of having increased its dividends over the years. It is one of the leading and key telecommunications and digital companies in the United States and while it has faced a difficult time in the pandemic, it has also played a significant role in helping the world stay connected. In fact, ever since the pandemic started, the daily average of AT&T’s Global Network went up by around 20 percent and its net adds for the third quarter were 5.5 million.

This year, the company will also be launching its 5G which will result in increased wireless sales and AT&T has also been growing its presence with HBO Max. AT&T has a dividend yield of 6.76 percent which makes it a stable stock to invest, particularly for investors who are interested in dividend income. Its market cap is also larger than $200 billion which is used for the innovative research and development of Bell Labs.

T-Mobile Us Inc (NASDAQ: TMUS)

T-Mobile ‎(TMUS) ‎is owned by Deutsche Telekom and is a leading company in the subscriber and revenue growth industry. Even Berkshire Hathaway, owned by Warren Buffet, is buying stocks of T-Mobile. One of the benefits of T-Mobile is that low-paying subscribers can even enjoy its perks such as through its TVision which launched in November last year with the price of only $10 a month. TMUS is also the new owner of Sprint which could help it in improving its rollout for its 5G wireless services as it now owns more mid-band radio spectrum than its competitors.

Towards the end of December last year, according to the IBD Stock Checkup, T-Mobile had an IBD Relative Strength Rating of 73 out of 99 which means that T-Mobile outperformed 73 percent of the other stocks. The stock has also moved above 5 percent in the buy zone, with gains, and its stock also gained 68 percent in the last year even with the pandemic.