TMT Daily "The state of yields: BZ Telecom vs. Banks, Utilities &..."

Research evidence excerpt

TMT Daily "The state of yields: BZ Telecom vs. Banks, Utilities &..."

Global Research

30 June 2026ab

TMT Daily Equities

Emerging MarketsThe state of yields: BZ Telecom vs. Banks,

Utilities & Transportation; TIGO: Atlas reports Telecommunications

a 49.5% stake in Millicom, up from 46.7% Leonardo Olmos,AnalystCFA

leonardo.olmos@ubs.com

+55-11-9658 7533

The state of yields: BZ Telecom vs. Banks, Utilities and Transportation Gustavo Farias

Associate Analyst

What happened: We leveraged Refinitiv consensus data to see how BZ telcos' 12m gustavo.farias@ubs.com

fwd dividend yield compares with Banks, Utilities and Transportation & Capital +55-11-2767 6154

Goods.

Telecom still pays a higher dividend yield than other dividend-paying

sectors. BZ telecoms' (TEF-BZ and TIM) dividend yield is about 8.4%, which is

575bps above Transportation & Capital Goods, 190bps above Utilities, and

105bps above Banks. Against a basket of the three sectors, the current

premium is 290bps, which is above the LTM average of 265bps but below the

last 3y average of 314bps.

TEF-BZ and TIM vs. individual names. While BZ telecom trades at a premium

over other sectors, the weighted averages may not show the full picture. We

note some single names in each sector trading at a comparable or even more

attractive dividend yield vs. TEF-BZ (8.1%) and TIM (8.9%), such as Marcopolo

at 9.0%, Bradesco at 8.4% in Banks, Axia at 10.9%, Taesa at 9.9% and CPFL at

8.3%.

UBS's take: Slightly positive for TEF-BZ and TIM. The recovery in the dividend yield

premium that we have observed across the Telecom sector since the beginning of

the year suggests improving relative attractiveness versus other dividend-paying

stocks and indicates that VIVT and TIMS could benefit from potential capital flows