TLTZF - Tele2: This Telco Remains High-Yield Cash Printer With An Upside

2024-07-11 22:44:07 ET

Summary

• Telco businesses seen as cash-printing machines with capital appreciation upside and good yield.
• Tele2 investment success with outperformance to S&P500 and 8-9% yield, improving portfolio return significantly.
• Tele2's solid fundamentals, stable customer base, and strategic acquisitions make it a strong contender in Scandinavian telco market.

Dear readers,

Some people tend to ask me what upside or what positives I see in many of the Telco businesses that I invest in. My response to this is quite simple - I view market-leading national and regional telcos as cash-printing machines with a capital appreciation upside and a very good yield (typically). It's an "easy" way to get a 5-9% yield on your capital, while at the same time being what I consider to be "safe", and also having a 10-20% annualized upside if the company outperforms - which it, at times, does.

So, in this article, I'm going to take a bit of a victory lap. Why?

Because I've been bullish on Tele2 ( OTCPK:TLTZF ) since October of last year - and since that article, we've seen outperformance to the S&P500 while harvesting an 8-9% yield on that price. That, dear readers, is what I call a valuation investment success, and it has improved my portfolio position and return significantly to today's level....

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