Мобильный 1 Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021February 2021March 2021April 2021May 2021June 2021July 2021August 2021September 2021October 2021November 2021December 2021January 2022February 2022March 2022April 2022May 2022June 2022July 2022August 2022September 2022
News Every Day |

How to invest in communications stocks, a sector that's huge, highly diversified, and growing — offering something for almost every type of investor

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Cell tower in the middle of field as sun sets.
Communications stocks include phone and internet firms, media companies, and more.
  • Communications stocks represent companies in a sector that includes the phone, internet, and media industries.
  • Communications stocks belong to both stable dividend-paying firms and volatile up-and-comers.
  • Investors can minimize risk by buying communications-focused ETFs and index funds.

In 2020, communications became more important than ever. Entering an era of remote work and play, people turned to communications technology of all kinds. Internet and cell phone service, video conferencing, video games, and streaming services were the lifeline that allowed us to muddle through — even thrive — in a challenging year.

But even before the coronavirus, communications was a key area to invest in, populated by some of the biggest names in the corporate world, and dealing with services used by millions every day. 

The communication services sector represents more than 10% of the S&P 500. It's so important for keeping everyday life running that the U.S. government classifies it as "critical infrastructure."

Here's what you should know about how to invest in communications stocks, what the risks are, and what rewards you might anticipate.

What is the communications sector?

Communications stocks are shares of companies that facilitate interaction in some way. These companies might operate land-based or cellular phone lines, broadband internet, wireless internet, and satellite communications.

Companies in the media, entertainment, interactive gaming, information creation, and information distribution businesses also belong to the communications sector.

If this sounds like a highly diverse group — well, it is. And it only recently became so.

It happened due to the widely used Global Industry Classification Standard (GICS). The GICS, jointly created by Standard & Poor's Dow Jones and Morgan Stanley Capital International, provides a way for investors to categorize and analyze stocks. 

In September 2018, GICS changed its index methodology and reorganized the communications sector.

Basically, it expanded the existing telecommunications sector to become a broader communications services sector. Stalwart telephone and traditional media stocks were suddenly in the same category as upstart, growth-oriented internet and info-tech companies. 

Still, a common thread among these companies is their reliance on subscription fees and advertising revenue.

Why invest in communications stocks?

It's difficult to characterize communications stocks. Since the category change, the sector has become one that offers something for every investor. 

Overall, communications is now better described as a growth sector — one likely to offer greater potential for appreciation than the market overall. 

It's also now more cyclical, or dependent on economic trends — likely to function better in boom times and during bull markets. 

Still, depending on which specific stock you're talking about, your reason for investing in a communications company might have more to do with earning a reliable dividend than attempting to capitalize on trendy growth. Many of the individual telecom blue-chip companies might well retain their defensive-stock nature — their ability to perform well in both prosperous and recessionary times. 

Types of communications stocks

To help make sense of the broad new communication services sector, let's break it down into subsectors. We've highlighted some key players in each, though many could be categorized under more than one sub sector because of their diversified suite of services.

industries in the communications sector

Diversified telecommunication services

This category consists of broadband, fiber-optic cable, and internet service providers.

Key players: Lumen Technologies (LUMN), AT&T (T), Verizon Communications (VZ), Globalstar (GSAT), Bandwidth (BAND), Consolidated Communications Holdings (CNSL), and Anterix (ANTX)

Wireless telecommunication services

This category is made up of cellular or wireless communications service providers.

Key players: T-Mobile U.S. (TMUS), Telephone and Data Systems (TDS), Boingo Wireless (WIFI), and Gogo (GOGO)


Media companies earn revenue from advertising, broadcasting, cable & satellite service, and print or electronic publishing.

Key players: Charter Communications (CHTR), Comcast (CMCSA), Dish Network (DISH), Fox (FOX), Nexstar Media Group (NXST), ViacomCBS (VIAC), Warner Bros. Discovery, Inc. (WBD), and Fluent (FLNT)


Companies in this sector work on movie and television production, distribution, and screening; music production and distribution; entertainment theaters; sports; streaming entertainment content; mobile gaming applications; and at-home educational software.

Key players: World Wrestling Entertainment (WWE), Live Nation Entertainment (LYV), Electronic Arts (EA), Activision Blizzard (ATVI), AMC Entertainment Holdings (AMC), Netflix (NFLX), and Walt Disney Company (DIS)

Interactive media & services

These companies profit from pay-per-click advertising, search engines, social media, social networking platforms, online reviews, and online classifieds.

Key Players: Interactive Corp (IAC), Alphabet (GOOG), Meta Platforms, Inc. (META), Twitter (TWTR), Yelp (YELP), Pinterest (PINS), Yandex (YNDX), and Angi Inc. (ANGI)

The advantages of communications stocks

There are a variety of reasons for investors to consider communications companies.

  • Performance. Over the 12-month span of Jan. 6, 2020, through Jan. 4, 2021, the S&P Communication Services Select Sector index, which includes all the stocks in the communications sector, returned 23.22%. By comparison, the S&P 500 index returned 14.4% within that same time frame. However, its current one-year return isn't as attractive. As of September 20, 2022, the communication has a year-to-date return of minus 33.66%.

The index only goes back to September 2018 due to the communications category shift, so it's harder to describe this sector's long-term performance. However, when S&P created its new index, it backtested it to December 21, 2007. It found that the sector returned 9.9% annualized over the next 10-ish years, through May 16, 2018. Over that same period, the S&P 500's annualized return was 7.25%.

  • Income. The growth companies in this sector help drive its returns. But the value companies provide investors with investment income. Verizon and AT&T, for example, both pay rich dividends, and have a long history of doing so. 
  • Diversification. Many companies in this sector earn revenue from diversified services. Comcast is a great example; it makes money from broadcast television, cable television, broadband service, satellite service, movies, and theme parks.

The downsides of communications stocks

Of course, no type of stock is without drawbacks. Those that are characteristic of communications include:

  • Regulatory risk. This industry is subject to government regulation, which can affect performance. For example, changing privacy laws poses a threat to communications companies that rely on using consumer data to tailor advertising and recommendations.
  • Operational risk. While many communications stocks thrived during the pandemic, others took a beating — especially those in the entertainment, recreational, and travel field. Disney's theme parks, which account for about 30% of the company's revenue according to Morningstar, were closed or operating at limited capacity during the first couple of quarters of 2020. Live Nation Entertainment, parent of Ticketmaster, took a big hit as governments banned large gatherings, including concerts, festivals, and live sports. 
  • Lack of differentiation/competitiveness. Some communications companies struggle to stand out because their services strike their customers as commodities. Among streaming services, lack of customer loyalty and the ease of switching providers resulted in a 41% churn rate in Q1 2020, according to consulting firm Deloitte. Vulnerability to technological change can also be an ongoing challenge.

How to invest in communications stocks

You can buy individual shares or fractional shares of communications stocks through the usual brokerage channels — either online or apps, such as E*TRADE, Robinhood, SoFi Invest — or the traditional full-service firms, like Charles Schwab, TD Ameritrade, Fidelity, and Vanguard. 

Of course, investing in an individual communications stock is riskier than investing in a communications industry ETF (sector risk) or index fund.

These are some of the biggest. Some of them also offer exposure to other sectors, such as utilities or information technology. So be sure to read the fund breakdown and strategy, to make sure you're getting the pure play you want.

The bottom line

Communications stocks are shares in companies in the communication services industry — a huge sector that includes phone, internet, satellite, media, entertainment companies.

They represent well-established, dividend-paying companies as well as more volatile up-and-comers.

Since communications stocks can belong to both defensive and growth-oriented companies, individual investors can get the most bang for their buck, and minimize risk overall‚ by investing through communications-focused ETFs and index funds.

The communications sector is an exciting place to be right now. The companies it includes provide the services that are fundamental to our everyday lives. And the COVID-19 lifestyle shifts might make us permanently more reliant on communications companies, even once the pandemic is behind us. 

Read the original article on Business Insider

Read also

TX Brownsville TX Zone Forecast

Chris Eubank Sr wants to pull Chris Jr out of ‘dangerous’ Conor Benn fight as he ‘won’t risk losing another son’

LeBron James reveals the three teammates he previously hated most as opponents

Прямой эфир РБК. Главные новости России и мира сегодня (Прямой эфир ежедневно)

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

The electric vehicle boom depends on mining. Rivian's new chief sustainability officer is tasked with making it responsible.

Today24.pro — latest news 24/7. You can add your news instantly now — here

News Every Day

The electric vehicle boom depends on mining. Rivian's new chief sustainability officer is tasked with making it responsible.

Sports today

Новости тенниса
Хуан Мартин Дель Потро

Хуан Мартин Дель Потро - о травмах: Не могу заниматься на беговой дорожке или ходить по лестнице без боли

Спорт в России и мире

Владимир Литвинов и Ольга Николаева: «Несмотря ни на что, мы будем продолжать танцевать»


All sports news today


Sports in Russia today


Транспортные хабы как центры притяжения. В Москве возле них строят спортивные объекты и разбивают парки

Новости России

Game News

День рождения закадычных друзей в Нижнем Новгороде ресторане Сальвадор Дали


News Every Day

UK airport to CLOSE as flights are stopped – putting thousands of jobs at risk

Губернаторы России
Юлианна Караулова

Юный певец Лев Соловьев в 7 лет покорил Юлианну Караулову и Алексея Чумакова

Как заявить о своем криптовалютном проекте? Маркетинг и реклама ICO

Росздравнадзор проверит сообщения о незаконной перепродаже дорогих лекарств

Владимир Литвинов и Ольга Николаева: «Несмотря ни на что, мы будем продолжать танцевать»

Псков занял 90 место в рейтинге российских городов по уровню зарплат

В Санкт-Петербурге начал работать джаз-клуб Игоря Бутмана

Фанаты Королевой раскритиковали ее за концерт в сине-желтых тонах

Мэтры Ролдугин и Култышев исполнили шедевры Брамса, Дебюсси и Рахманинова в Петербурге

Русские солдаты хором спели "Кукушку" Цоя в электричке

Хуан Мартин Дель Потро - о травмах: Не могу заниматься на беговой дорожке или ходить по лестнице без боли

Прошла жеребьёвка турнира ATP 250 в Тель-Авиве, где сыграют Новак Джокович, Аслан Карацев и Роман Сафиуллин

На "Троице" Рублева обнаружили 61 изменение после отправки в Сергиев Посад

Икона «Троица» Рублева пострадала после пребывания в Троице-Сергиевой лавре

Владимир Литвинов и Ольга Николаева: «Несмотря ни на что, мы будем продолжать танцевать»

III Интеллектуальная Битва объединила представителей власти и бизнеса на региональном Дне Минстроя России

Компания из Бурятии вошла в число лучших экспортеров России 2022 года

Премьера песни от All Leks "Какими Станем"

Комбайны «Гомсельмаш» снабдят автопилотами Cognitive Pilot

Юный певец Лев Соловьев в 7 лет покорил Юлианну Караулову и Алексея Чумакова

Детско-юношеский турнир по футболу «Кубок офицеров России» прошел в Одинцове

Финансовый директор АО «Сбербанк Лизинг» Алексей Киркоров принял участие в работе XIX Международного банковского форума

40% достигли скидки на жильё в России

В Подмосковье попал в аварию элитный автомобиль Aurus Senat

В районе Преображенское дликвилировали незаконно возведенную пристройку к кафе

Коллекцию арт-объектов «Ресайкл Групп» представят на РЭФ-2022

Путин в России и мире

Персональные новости


Тимати рассказал, что готов воевать

News Every Day

Green gold: Mexican avocados, beloved in U.S., fuel multi-billion dollar market

Friends of Today24

Музыкальные новости
"Воскресенье " Олег Митяев

Персональные новости
Близкий друг Путина миллиардер Пугачев. Вся правда о Путине, его семье и деньгах. В гостях у Гордона (2021)

Навальный об уволенном за пост священнике (2021)

Slava Marlow – суперуспех и депрессия в 21 год / вДудь (2021)

Обнаглевшие дети путинской элиты (2021)

Дайте собакам мяса (новый звук) -Владимир Высоцкий

Группа "Рождество" - песня "Так хочется жить!" (Видео с концерта в Киеве группы "РОЖДЕСТВО" в 2011 году в Доме офицеров)

Adriano Celentano Любимая песня Челентано (высочайшая энергетика) talentTV