Shares in telecoms provider BT are a ‘buy’ for lower risk investors

14th September 2015

UK telecoms provider BT is an attractive choice for investors this week writes Ian Forrest, investment research analyst at The Share Centre…

This year, BT announced its acquisition of EE, putting it in a very strong market position in the UK. The company also accelerated the roll-out of its fibre optic programme and expects to have 90% UK coverage by the end of 2017.”

Despite these good revelations, investors will be aware that the group’s first quarter results in July showed revenue down by 2%. However, during this period BT did importantly sign up 100,000 new customers to its mobile service. Those interested in the group should note that since these figures, the company has confirmed it is on track to meet full year expectations.

Amidst development in the UK, BT is also investing to expand its operations in Asia and Latin America where it sees strong potential for further growth. Investors will additionally be attracted to the expectation that its dividend yield may grow by 10-15% per annum over the next two years.

The shares look fairly good value at the moment, so we believe now may be a good time to ‘buy’. Shares in the group are best suited to lower risk investors looking to achieve a balanced portfolio.

Leave a Reply

Your email address will not be published. Required fields are marked *