A telecom stock can make for a safe investment to be holding right now. That's because their businesses are relatively stable as the services they provide are necessities for consumers. They could also benefit from an uptick in travel this year and more people using their phones while abroad. Many of these stocks also pay dividends, which can help boost your overall returns.
One telecom stock that looks like an attractive pick up right now is Orange S.A. (NYSE:ORAN). The French-based multinational company has been branching out over the world. It has been investing in both the Middle East and Africa, with its 4G network available in 17 countries there today. It says that 1 in 10 Africans use its service. That's in addition to its vast footprint in Europe, which remains its bread and butter – the bulk of its revenue comes from that part of the world. As a geographically diverse telecom business, Orange can make for a solid long-term investment.
Despite the downturn in the markets this year with the S&P 500 falling 18%, shares of Orange have been relatively stable, up 2%. And that's with the stock falling sharply of late. The good news for long-term investors craving a dividend, Orange's payout is now around 7.1%. Investing $5,000 into that stock today could result in more than $350 in dividend income throughout a full year.
Trading at a forward price-to-earnings multiple of around 10, Orange could make for an attractive buy right now, for both its high yield and relatively modest valuation.
