The telecommunications sector plays host to a range of stocks that pay substantial dividends and trade at earnings multiples that are significantly below the broader market average. It's also true that many companies in the space don't offer much in the way of growth potential. But some telecoms combine low P/E values and high yields with the potential to benefit from far-reaching trends that could pave the way to market-beating gains and continued payout growth.
5G is the next major evolution in wireless internet technology. It will dramatically expand the capabilities of wearables and connected cars, and work as the backbone for a wide range of Internet of Things (IoT) devices and services. AT&T (NYSE: T) and Verizon Communications (NYSE: VZ) are two top 5G stocks in the telecom space, and each company trades at less than 12.5 times forward earnings estimates and boasts a dividend yield that's more than double the market average. For investors looking for high-yield U.S. telecoms, they stand out as the best plays in the space.
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