Telecommunications, the best performing sector in the first half of the year, surged on Monday to trade at levels unseen since June 2008. Although Verizon Communicationsand AT&T are the biggest players in the sector, they may not be the best bet for investors.
Christopher King, Stifel Nicolaus telecom and cable services analyst, expects telecom to remain a top performing sector in the second half of 2012. “Telecom is very well positioned, particularly in a defensive market,” he said.
King said that investors have become increasingly more engaged with the sector over the past six months because it is a safe-haven in a choppy, volatile market. “A lot of investors are looking for those free cash-flow yields and dividend yields that the larger Bells are spinning out,” he told CNBC’s “Power Lunch.”