Shares in BT (222.25p), the telecoms group, have underperformed the FTSE 100 index by about 10 per cent in 2005. The former telecoms monopoly is widely seen as being at risk from a growing number of more innovative competitors and from a regulator eager to crack the whip in its direction.
However, earlier this month BT appeared to have answered its critics when it unveiled a consumer friendly product line-up for 2006 that includes TV on demand over the internet and video calling from land lines. The company, like its rivals, is riding the crest of the broadband wave and falling traditional revenues are being replaced by new offerings.
Gadgetry apart, the appeal for investors over the next 12 months will be the dividend, currently 5.6 per cent. Goldman Sachs is expecting the dividend yield to grow further during 2006. Buy
BT stock quotes
BT stock charts
Follow this thread
