Is the telecommunication sector defensive?

It seems as though the telecom sector is more like a consumer discretionary sector. What are the major differences in the way a consumer discretionary stock obtains revenue compared to a telecom sector obtaining revenue?

Personal Finance, Stocks
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April 2017

Yes, it can be considered defensive. Just remember that high dividend companies (like telecoms) can be hurt by rising interest rates.

If investors are using dividends as an interest income replacement, when rates rise, they may choose the safer bond investments.

That could hurt the dividend stocks. Know what your risks are.

Hope that helps!

April 2017