Telecoms are offering income potential but through convertible paper rather than through shares. Som...
Telecoms are offering income potential but through convertible paper rather than through shares. Some 18 months ago British Telecom shares offered a yield of 2.8% which was above the market average. Now the yield offered is only 1.5% compared with the yield on the FTSE 350 Index of 3.3%. The sector takes up 15.5% of the FTSE 350 index making it impossible not to hold any telecom companies within a portfolio, according to Neil Cumming manager of Aberdeen High Income unit trust. Cumming is overweight both BT and Cable & Wireless, preferring to hold well established incumbents rather than ...
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