Telstra Corporation Ltd (ASX: TLS) and Vocus Group Ltd (ASX: VOC) are two of Australia's leading telecommunications companies.
But that has not stopped investors selling down shares in either company over recent months. As can be seen in the chart above.
Over the past five years, however, shares of both telcos have come out well ahead of the market, or S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO). Perhaps it is time to check in on these two market heavyweights.
Vocus Communications
Vocus is the name behind popular telecommunications brands for businesses and consumers. Thanks to acquisitions, Vocus' stable of brands includes Dodo, iPrimus, Commander, CallPlus, M2 Wholesale and more. Bedding down acquisitions is never easy and the recent integration of M2 Group and NextGen has left Vocus a little battered and bruised.
However, while growth may be more modest in the years ahead, the current price of Vocus shares appears very undemanding. At today's prices, it offers a dividend equivalent to a yield of 3.5% fully franked.
Telstra Corporation
Telstra is a name synonymous with mobile and home broadband in Australia. The $62 billion company has its roots deep in many complementary markets and indeed share portfolios. While the rollout of the National Broadband Network (NBN) is a boon for most households, the economy and industry at large, Telstra's ride has not been smooth.
Although the company is being rewarded for its lucrative copper cable network, which it must forgo to the NBN Company, the playing field is being levelled. Telstra's profits may not be able to bridge the transition to the NBN as easy as first thought. While its shares offer a fully franked dividend of more than 5.8%, there may come a time when that yield is put in doubt.
Foolish Takeaway
If I were to pick one of these two stocks to add to a retirement portfolio today it would be Vocus. At today's prices, it appears really good value. However, both companies offer investors healthy exposure to the Australian sharemarket, in my opinion.
