Wall Street is in love with this safe haven, dividend play and sees big returns this year
Wall Street analysts are even more confident in telecommunication company AT & T after its latest earnings report. AT & T is a safe haven, high yielding play that's already outperformed this year, rallying more than 19% even as the S & P 500 has fallen 8%. Over the past 12 months, AT & T surged more than 61%. It also pays a dividend equal to a 4.1% yield today. The company's first quarter results left analysts bullish on AT & T, saying solid results driven by a strong showing in subscriber count and expanding profit margins show the wireless provider is well-equipped to navigate uncertain macroeconomic waters and continue to outperform. "AT & T remains our favorite stock and [is] a top pick on the U.S. Equity Analyst Focus List following strong 1Q25 results," JPMorgan's Sebastiano Petti wrote on Wednesday. "Competitive intensity has picked up across the wireless ecosystem, but AT & T's convergence playbook is winning in the marketplace and positions the company well in this more active switcher backdrop." Petti raised his year-end target to $31 from $28, implying 14% upside from Wednesday's close of $27.19 — excluding the dividend. T 1D mountain AT & T shares Thursday "Subscriber count is up, more subs are bundling, and margins are expanding — all ahead of expectations," Bernstein's Laurent Yoon said in a note, calling AT & T "more than a safe haven" following first-quarter results. His $29 price target would equal 7% upside for AT & T. Bank of America Securities is also enthusiastic. Analyst Matthew Griffiths reiterated a buy rating and raised his price objective to $32 from $28, implying 17% upside from Wednesday's close. AT & T reported first-quarter revenue above analysts' estimates and reaffirmed full-year profit guidance. Revenue of $30.60 billion exceeded the FactSet consensus estimate of $30.36 billion. First-quarter adjusted earnings of 51 cents per share matched expectations. AT & T forecast adjusted per-share earnings of $1.97 to $2.07 in 2025, while analysts polled by FactSet were anticipating $2.08 per share. To be sure, analysts said they expect higher tariffs could challenge AT & T later this year. But they were encouraged by the company pulling forward its planned cost initiatives, and expect little risk to AT & T's long-term fiber buildout plans. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
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Yahoo
27 minutes ago
- Yahoo
TELUS Submits Non-Binding Indication of Interest to Acquire Full Ownership of TELUS Digital
Acquisition would offer TELUS Digital shareholders liquidity at a compelling value and enhance TELUS Digital's ability to effectively respond to changing market dynamics Closer operational integration between TELUS and TELUS Digital to supercharge AI and SaaS transformation across telecommunications, health, agriculture and consumer goods sectors TELUS Digital to continue as a key enabler to TELUS' growth strategy and operational efficiency VANCOUVER, BC, June 12, 2025 /CNW/ - TELUS Corporation (TELUS) today announced that it has submitted a non-binding indication of interest (IOI) to the board of directors of TELUS International (Cda) Inc. (TELUS Digital) in respect of a proposed transaction pursuant to which TELUS would, directly or indirectly through one of its subsidiaries, acquire all of the issued and outstanding subordinate voting shares and multiple voting shares of TELUS Digital not already owned directly or indirectly by TELUS for a price per share of US$ 3.40 to be paid in cash, TELUS common shares or a combination of both. The proposed price represents a premium of approximately 15% to TELUS Digital's closing share price on the New York Stock Exchange (NYSE) on June 11, 2025, and a premium of approximately 23% over TELUS Digital's 30-day volume weighted average trading price based on Canadian composite (Toronto Stock Exchange and all Canadian marketplaces) and U.S. composite (New York Stock Exchange and all U.S. marketplaces) as of such date. TELUS has asked the TELUS Digital board of directors to begin a process to review the IOI and appoint a special committee of independent directors to evaluate the proposal. "Our proposal to fully acquire TELUS Digital reflects our belief that closer operational proximity between TELUS and TELUS Digital will enable enhanced AI capabilities and SaaS transformation across all lines of our business, including telecommunications, TELUS Health and TELUS Agriculture & Consumer Goods, driving positive outcomes for the customers we serve," said Darren Entwistle, President and CEO of TELUS. "We anticipate that our deep familiarity with TELUS Digital will enable us to conclude this proposed transaction, with appropriate engagement from TELUS Digital, quickly and efficiently and, post-closing, effectively integrate the business and the team. TELUS Digital will continue to be an important business unit within TELUS, underscored by its demonstrated leadership in customer service excellence, digital transformation and heartfelt caring in the communities where team members live, work and serve. Accordingly, we believe the terms of our proposal are compelling for TELUS Digital shareholders and our leadership team looks forward to working constructively with the independent members of TELUS Digital's board of directors to progress the proposed acquisition. Notably, we believe this proposed transaction will yield meaningful benefits for TELUS Digital and importantly, for our customers and investors." Any financing undertaken in the near term will be designed with a view to being neutral to TELUS' balance sheet net debt to EBITDA leverage ratio, as TELUS maintains focus on deleveraging priorities. The IOI is a non-binding indication of interest and is subject to, among other matters, confirmatory due diligence satisfactory to TELUS, agreement on transaction structure, the negotiation and execution of mutually acceptable definitive transaction documents, and the approval of the proposed acquisition by the TELUS Digital board of directors. Further, the consummation of the proposed acquisition, even if definitive transaction documents are entered into, would be subject to customary closing conditions for transactions of this nature, including, among others, the receipt of shareholder approvals required under applicable securities laws, including Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions, and court approval. No agreement has been reached between TELUS and TELUS Digital, and no assurances can be given that definitive transaction documents with respect to the proposed acquisition will be entered into, as to the final terms of any transaction or that a transaction will be consummated. Barclays is acting as exclusive financial advisor to TELUS, and Stikeman Elliott LLP and A&O Shearman are acting as legal advisors. TELUS and its advisors stand ready to work with the TELUS Digital board of directors to agree the terms of, and implement, the proposed acquisition. TELUS currently beneficially owns an aggregate of 152,004,019 multiple voting shares and 6,874,822 subordinate voting shares, representing approximately 92.5% of the outstanding multiple voting shares, 6.1% of the outstanding subordinate voting shares, representing 57.4% of all outstanding shares, and 86.9% of the combined voting power of all outstanding shares. The foregoing percentages are based on 164,381,876 multiple voting shares and 112,477,222 subordinate voting shares issued and outstanding, as reported by TELUS Digital in its condensed interim consolidated financial statements for the three months ended March 31, 2025. TELUS currently has no additional plans or intentions that relate to its investment in TELUS Digital other than those described in the IOI. Nonetheless, it may or may not purchase or sell multiple voting shares, subordinate voting shares or other securities of TELUS Digital in the future on the open market or in private transactions, depending on market conditions and other factors. Depending on market conditions, general economic and industry conditions, TELUS Digital's business and financial condition and/or other relevant factors, TELUS may at any time develop other plans or intentions in the future relating to one or more of the actions set forth in Items 5(a) through (k) of TELUS' early warning report or Items 4(a) through (j) of TELUS' Schedule 13D. TELUS does not intend to make additional disclosure regarding the proposed acquisition until a definitive agreement has been reached or unless disclosure is otherwise required under applicable securities laws. A copy of the early warning report (to which a copy of the IOI is attached) filed by TELUS in connection with the submission of the IOI is available on TELUS Digital's profile on SEDAR+ at A copy of Amendment No. 3 to Schedule 13D (to which a copy of the IOI is attached) filed by TELUS in connection with the submission of the IOI is, or will be, available on the U.S. Securities and Exchange Commission's EDGAR database at Alternatively, you may contact TELUS Investor Relations at 1-800-667-4871 in order to obtain a copy of the early warning report or Amendment No. 3 to Schedule 13D. The headquarters and principal executive offices of TELUS Digital are located at Floor 5, 510 West Georgia Street, Vancouver, British Columbia, Canada V6B 0M3. This press release does not constitute an offer to buy or sell or the solicitation of an offer to sell or buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with registration and other requirements under applicable law. Forward-Looking Statements This news release contains forward-looking statements about future events pertaining to the proposed acquisition, including expectations in respect of the proposed acquisition and the completion of such proposed acquisition, the realization of expected benefits to TELUS, TELUS Digital and their respective shareholders, including the realization of the synergies and other benefits of combining TELUS Digital's businesses with TELUS, and the ability of the businesses of TELUS Digital to respond to changing market dynamics, seizing considerable growth opportunities and leveraging strong demand. The terms TELUS, we, us and our refer to TELUS Corporation and, where the context of the narrative permits or requires, its subsidiaries. Forward-looking statements include any statements that do not refer to historical facts, including statements relating to the proposed acquisition. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, strategy, target and other similar expressions, or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, predict, seek, should, strive and will. These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from expectations expressed in or implied by the forward-looking statements. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from those described in the forward-looking statements. Among the factors that could cause actual results to differ materially include, but are not limited to, those relating to whether the proposed acquisition will be approved by the TELUS Digital Board, whether any definitive agreement will be successfully negotiated and executed in connection with the proposed acquisition, whether the proposed acquisition or any other transaction will be consummated, the possibility for the proposed acquisition, even if a definitive agreement is entered into, not to be completed on the terms and conditions, or on the timing, contemplated thereby, and that it may not be completed at all, due to a failure to obtain or satisfy, in a timely manner or otherwise, required shareholder and court approvals and other conditions to the closing of the proposed acquisition or for other reasons, the possibility that TELUS may not realize any or all of the anticipated benefits from the proposed acquisition, as well as the other risk factors as set out in our 2024 annual management's discussion and analysis and in other TELUS public disclosure documents and filings with securities commissions in Canada (on SEDAR+ at and in the United States (on EDGAR at Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation. The forward-looking statements contained in this news release describe our expectations at the date of this news release and, accordingly, are subject to change after such date. Except as required by applicable law, TELUS disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. This cautionary statement qualifies all of the forward-looking statements in this document. About TELUS TELUS (TSX: T, NYSE: TU) is a world-leading communications technology company, generating over $20 billion in annual revenue with more than 20 million customer connections through our advanced suite of broadband services for consumers, businesses and the public sector. We are committed to leveraging our technology to enable remarkable human outcomes. TELUS is passionate about putting our customers and communities first, leading the way globally in client service excellence and social capitalism. Our TELUS Health business is enhancing more than 150 million lives worldwide through innovative preventive medicine and well-being technologies. Our TELUS Agriculture & Consumer Goods business utilizes digital technologies and data insights to optimize the connection between producers and consumers. Operating in 32 countries around the world, TELUS Digital (TSX and NYSE: TIXT) is a leading digital customer experience innovator that designs, builds, and delivers next- generation solutions, including AI and content moderation, for global and disruptive brands across strategic industry verticals, including tech and games, communications and media, eCommerce and fintech, banking, financial services and insurance, healthcare, and others. Guided by our enduring 'give where we live' philosophy, TELUS, our team members and retirees have contributed $1.8 billion in cash, in-kind contributions, time and programs including 2.4 million days of service since 2000, earning us the distinction of the world's most giving company. For more information about TELUS, please visit follow us at @TELUSNews on X and @Darren_Entwistle on Instagram. Investor Relations Robert Mitchellir@ Media RelationsSteve View original content to download multimedia: SOURCE TELUS Communications Inc. View original content to download multimedia: Sign in to access your portfolio
Yahoo
28 minutes ago
- Yahoo
Sizzling Rally in US Stocks Leaves Them Pricey Compared to Bonds
(Bloomberg) — Traders who hung on during this year's tariff-fueled rollercoaster ride in stocks are facing a conundrum: Bonds may offer more attractive returns in coming years, according to one widely tracked measure. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban NY Long Island Rail Service Resumes After Grand Central Fire Do World's Fairs Still Matter? The equity risk premium, which investors use to determine the difference between expected returns on equities and US Treasuries, is hovering around its lowest point since 2002, data from Bloomberg Intelligence showed. That suggests stocks are more expensive relative to bonds than they have been for most of the last two decades, according to Bloomberg Intelligence strategists Gina Martin Adams and Michael Casper. Calculated by subtracting the S&P 500 Index's (^SPX) earnings yield from the 10-year Treasuries rate, the gauge helps investors decide where to allocate their cash. The case for owning equities becomes less compelling if bonds can earn nearly as much as stocks but with reduced risk. After the big recovery in stocks since April, the readout is fairly gloomy for equities: The S&P 500 (^GSPC) has averaged a 12-month return of only 2.5% over the past three decades when the risk premium has stood around current levels, according to data compiled by investment research firm CFRA. That compares to an average annual return of 8.5% for the period. 'Whenever you see equity risk premium slump this much, it historically tells us that stocks are becoming less attractive,' said Timothy Chubb, chief investment officer at Girard, a wealth advisory firm backed by Univest. 'After a massive rally over the past two months, this could take some air out of the recent rebound.' With the S&P 500 within 2% of a record following a breathtaking surge from the edge of a bear market, investors are seeking fresh catalysts to justify buying stocks at current levels. While a brighter outlook on global trade, robust corporate earnings and resilient economic data have driven that rebound, those factors appear to be largely priced in. That may be a reason for the comparatively listless trading in equities of late. The S&P 500 hasn't seen a move exceeding 0.6% in either direction for 10 of the last 11 sessions through Wednesday — the longest such stretch since early December, according to data compiled by Bloomberg. 'We know what the rules of the game are now for the trade war, and tariff optimism is no longer a floor for shares with things looking pricey again,' said Scott Ladner, chief investment officer at Horizon Investment. Meanwhile, Treasury yields stand near their highest levels in decades. Worries over US fiscal spending are expected to keep borrowing costs high for the foreseeable future, though several months of weaker-than-expected inflation have bolstered the case for the Federal Reserve to cut interest rates. Not all periods with a negative or low equity risk premium have coincided with poor stock returns. The measure was negative for two long stretches in the post-World War II era, from October 1968 to October 1973, and from September 1980 to June 2002, BI data show. During the first stretch, stocks gained 1.1% annually, but they surged an annualized 10% in the latter. At the same time, worries over the US fiscal position have dented the appeal of Treasuries, especially longer-dated maturities. DoubleLine Capital's Jeffrey Gundlach was the latest to sound a warning, saying on Wednesday that America's debt burden and interest expense have become 'untenable' and could drive investors out of dollar-based assets. Pricey stock valuations — including those of the so-called Magnificent Seven tech megacaps — are one key reason for the low equity risk premium. Excluding the so-called Magnificent Seven stocks including Nvidia Corp. (NVDA), Microsoft Corp. (MSFT) and Meta Platforms Inc. (META) brings the forward earnings yield up to 5.1%, from its current level of 3.62%, BI data shows. Still, that's just 0.7 percentage point above the 10-year yield. 'The outlook for stocks will ultimately be driven by trade and Fed policy in the coming months,' said Casper, of Bloomberg Intelligence. 'The Fed will be a pivotal catalyst for any further upside ahead since monetary easing is historically good for equity gains. But investors need clarity.' New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
Yahoo
33 minutes ago
- Yahoo
Why UnitedHealth Stock Imploded Last Month
UnitedHealth Group continued its historic drop in May, losing 26.6% during the month. The health insurer is facing new allegations of fraud and misconduct. The company's CEO suddenly stepped down, citing only "personal reasons." 10 stocks we like better than UnitedHealth Group › Shares of UnitedHealth Group (NYSE: UNH) fell in May, finishing the month down 26.6%. The collapse came as the S&P 500 (SNPINDEX: ^GSPC) gained 5.5% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 7.9%. The troubled health insurance giant faced a series of damning reports and allegations of fraud and misconduct following the sudden departure of its CEO. In May, UnitedHealth's then-CEO, Andrew Witty, announced he was stepping down, citing "personal reasons." The sudden loss of its CEO sent shockwaves through the company and signaled to investors the depth and scale of UnitedHealth's ongoing issues. The resignation came at the same time that the company told investors it was suspending guidance for 2025 due to surging medical costs. UnitedHealth was already facing an investigation from the Department of Justice in a civil case, but in May, it was revealed that the DOJ's Health Care Fraud Unit is conducting a criminal investigation into the company for Medicare fraud. Although it was revealed last month, the company has apparently been under criminal investigation for a year. Just a week after the DOJ revelation, The Guardian reported that UnitedHealth has been making secret bonus payments to nursing homes in order to keep ailing residents out of hospitals and save money. The report also claims the company staffed nursing homes with its own medical teams who, at times, interfered in order to keep residents who needed hospital care from receiving it. One former UnitedHealth executive told The Guardian, "You gain profitability by denying care, and when profitability suffers for the shareholders, that's when people get crazy and do things that are not appropriate." Just a year after the company's CEO was murdered in New York City, the company is still on its heels, with problems mounting. As James Harlow, senior vice president at Novare Capital Management, put it, "It just doesn't seem like they have a plan." All of this has shaken investor confidence, leading in April and May to the most severe drop for an S&P 100 company since Netflix fell 54% in May 2022, according to Dow Jones Market Data. There are just too many issues facing UnitedHealth at the moment, with no clear picture of an imminent turnaround. This once-seemingly stable investment looks far from it at the moment, and I would stay away from the stock. Before you buy stock in UnitedHealth Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and UnitedHealth Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. Why UnitedHealth Stock Imploded Last Month was originally published by The Motley Fool Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
