| | | I also have T and KMI along with some other telecom and midstreams. I've been giving them a lot of thought and I have come to some likely events to watch.
In telecom, I think we are going to see a lot of debt as 5G rolls out. More towers will be needed since effective distance of transmission is shorter. Also I fear there are going to be price wars since there are a lot of "baby bells" emerging again. I fear there may be some short/midterm pain ahead. That said, I think longer term, the telecoms that survive without too much debt are going to gain a huge piece of the net. If 5G turns out to be all they say, I don't know why anyone would want to be tied down at home to cable/DSL internet when 5G mobile will be just as fast and able to be used anywhere you happen to be. I have trimmed about half my T because I was overweight and didn't like the chart so I bailed half in the 30s but still have a sizable position.
As for midstreams, kind of the same. Short/midterm, Nat Gas demand is down, LNG hasn't grown as much as the bulls thought. Rig counts are down and as green energy is pushed forward, even though I think Nat Gas is going to be around for a long time as a cheap semi-clean energy source and backup power requirement when the wind dies or cloudy days, I don't see huge growth ahead. I just see it staying about flat. That said, I do think midstream can be repurposed and/or expanded for hydrogen and water needs in the future.
I guess I might just be thinking aloud,I don't know. I saw your post and it reminded me of a bunch of other posts I've been reading.
I too like steady dividends as long as the stocks don't fall below yield. I was just looking at the SPX high yield ETF and was noticing how much it has lagged the SPY. Growth sure seems to still be en vogue. |
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