Today I am focused on the most attractive group of stocks for when this current bear market rally ends and the next drop begins. If you truly believe that now is the dawn of the next bull market, then take a gander at this article before you get ahead of yourself: New Bull Market? Or New BS?

The reason to consider communication stocks is 3 fold. First, this is considered a defensive group that holds up well during market declines. Second, communication demand was already strong, but even stronger the more disconnected we are with the “stay @ home” trends of the coronavirus economy. And third, these stocks can offer up some pretty attractive dividend yields like the 4.2% for VZ and 5.8% for BCE.

Alright. You get idea. Now let’s explore the attractive investment qualities of these 4 leading communication stocks:

Verizon Communications (VZ)

VZ is one of the world’s top communications providers for consumers and businesses alike.  From Verizon FiOS TV service to cell phone service, data networking and beyond, VZ seemingly does it all in the context of communication.  In fact, VZ has moved beyond AT&T as North America’s largest wireless carrier.  This success has propelled VZ to the top 12% of Zacks’ industry rankings.

The fact that VZ merely dipped down to $50 during the coronavirus pandemic is a testament to investor support for this communications darling.  Furthermore, that many more people are likely to sign up for Verizon FiOS TV service thanks to our new stay-at-home economy in which social activities are shunned for isolation.  It is quite possible VZ will reach TipRanks’ average analyst price target of $60.92 by the end of the year. Plus VZ will give you an ample 4.2% dividend yield while you calmly wait for shares to rise.

(BTW, Verizon is one of the 6 stocks currently owned in the Reitmeister Total Return newsletter portfolio. Click here to learn more.)

American Tower (AMT)

Wireless communication has quickly become essential to daily living.  AMT lays the groundwork for wireless devices to function.  The company’s wireless communications towers operate in the United States, Mexico, Brazil, Chile and India.  AMT leases tower space to myriad wireless service providers along with TV and radio broadcast businesses.

AMT clients include the likes of Verizon Wireless, AT&T and T-Mobile.  All in all, AMT has nearly 200,000 communication sites.  As detailed in this informative Zacks article, AMT just might be the recession-proof stock investors are looking for.

Crown Castle International (CCI)

Rewind back to late March and the market’s nosedive unjustly took some wireless communications businesses down to or even below their 52-week lows.  CCI was one of those unfortunate victims.  However, as evidenced by the stock’s rapid ascent in the weeks to follow, the temporary sell-off was clearly an overreaction.

This leading independent wireless communication tower operator leases antenna space to wireless companies, designs its own networks and engineers radio frequencies.  In total, CCI owns, manages and leases 40,000+ wireless communications towers across nearly 80,000 route miles.  CCI’s quarterly dividend of $1.20 combined with its immunity to a potential conflict with China makes it quite the attractive stock.

BCE, Inc. (BCE)

Wouldn’t it be nice to own the stock of the company that provides phone service to nearly three-quarters of Canada’s population?  You have such a safe and stable opportunity thanks to BCE.  The company is Canada’s largest communications service provider, including Bell Wireline and Bell Wireless services to everyday people and businesses.

BCE currently trades around $41.  TipRanks’ average analyst price target for the stock is in excess of $44 with some analysts seeing $47-48 as a more reasonable perch for shares. On top of the value proposition BCE also provides an annual dividend of 5.8%. That is just icing on the cake for investors in search of a low-risk communications stock likely to prove profitable across posterity.

Want more great investing ideas?

7 “Safe-Haven” Dividend Stocks for Turbulent Times

Is This a “Suckers Rally”?  – Is this truly a new bull emerging or just a bear market rally?

Reitmeister Total Return newsletter – Learn Steve Reitmeister’s unique strategies that are producing profits in the midst of the bear market.

VZ shares rose $0.32 (+0.56%) in premarket trading Thursday. Year-to-date, VZ has declined -5.11%, versus a -12.76% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

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