If you are looking for two ASX telco stocks to buy today, consider TPG Telecom Ltd (ASX: TPM) and Vocus Group Ltd (ASX: VOC).
Here's how the TPG Telecom and Vocus Group share price has fared over five years:
Vocus Group
Vocus is the name behind retail and business internet brands such as M2 Wholesale, Dodo, Vocus, Eftel, Commander, Primus and more. The company recently merged with M2 Group and bought NextGen before senior management tried to throw out the CEO but failed and walked away after years with the business.
Meanwhile, shareholders became increasingly concerned about the future profitability of the business — and the telco sector more broadly — as the national broadband network (NBN) continued its roll out. While this may be a valid concern, Vocus appears well placed for the changes. And following a share price fall, its shares look cheap and pay a handy dividend to boot.
TPG Telecom
TPG is a name familiar to millions of Australians with broadband internet connections. Its hugely popular unlimited low-cost broadband plans have enabled it to grow rapidly throughout the country. Like Vocus, it appears TPG shares have been thrown out with the market.
While both companies have to contend with the NBN rollout, mobile networks are fast becoming a superior offering for most Australians. This creates a real opportunity for TPG, which is now taking its popular broadband marketing strategies and applying them to mobile plans.
At today's prices, TPG shares appear better value than most others on the market.
Foolish Takeaway
If you are looking for two easy-to-understand telecommunications stocks to add to your share portfolio, TPG and Vocus are worth considering. However, if you want our best dividend stock idea for 2017, see below.
