A 12% Yield That Just Keeps Getting Bigger
The following video is part of our "Motley Fool Conversations" series, in which Motley Fool senior technology analyst Eric Bleeker and chief technology officer Jeremy Phillips discuss emerging trends in technology.
In today's edition, Jeremy and Eric look at the telecom sector and its recent struggles. Yields are on the rise, and that's not necessarily a good thing, as collapsing share prices are the catalyst behind these rising yields. The main fear in the industry is that a slowdown could crimp access to cheaper debt that these telecoms rely on for their debt-heavy capital structure. Eric reminds investors not to chase the highest yield alone, but to manage risk and create a basket of high-yielders that can survive a downturn and protect principal.
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At the time this article was published BothEric BleekerandJeremy Phillipsown shares of no companies listed above. The Motley Fool owns shares of Intel.Motley Fool newsletter serviceshave recommended buying shares of AT&T and Intel and creating a diagonal call position in Intel. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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