In the world of investing, finding a reliable income stream is akin to discovering a hidden treasure. And today, I want to share with you a gem that has caught my eye: Telecom Plus (LSE: TEP), a FTSE income share with a forecast yield of 9.1% by 2028. This is a company that stands out in a market where many dividends look fragile, and its stability is exactly what income investors crave. But what makes this stock truly fascinating is not just its high yield, but the combination of recurring revenue, low customer churn, and strong cash conversion that underpins its success. This is a company that is not only providing essential services but also doing so in a way that ensures predictable and growing dividends. What many people don't realize is that this stability is not just a result of good management, but also of a business model that is built on the foundation of recurring revenue. This is a key insight that sets Telecom Plus apart from many other companies in the same sector. In my opinion, this is what makes Telecom Plus a truly attractive investment opportunity. The company's business model is built on a bundle of services that keeps customers loyal and cash flows predictable. This is a model that is not only stable but also has the potential to grow over time. The company's ability to generate recurring revenue is a key strength, and it is this that underpins the rising dividend profile. One thing that immediately stands out is the company's ability to generate a high yield while maintaining a strong balance sheet. This is a rare combination that is not often seen in the market. The company's dividend yield is currently 6.9%, which is more than double the current 3.4% average dividend yield of its home FTSE 250 index. This is a significant advantage that sets Telecom Plus apart from many of its competitors. From my perspective, the company's ability to generate a high yield while maintaining a strong balance sheet is a key strength. This is a company that is not only providing essential services but also doing so in a way that ensures predictable and growing dividends. The company's forecast earnings growth of 10% per year over the medium term is a testament to its strong fundamentals. This is a company that is not only stable but also has the potential to grow over time. If you take a step back and think about it, the company's ability to generate a high yield while maintaining a strong balance sheet is a key strength. This is a company that is not only providing essential services but also doing so in a way that ensures predictable and growing dividends. The company's forecast dividend growth is impressive, with analysts projecting the dividend to rise to 101.4p this year, 110.2p next year, 118p in 2028, and 124p in 2029. These numbers are particularly fascinating because they suggest that the company's dividend yield could rise to 9.1% by 2028. This is a significant increase from the current yield of 6.9%, and it is a testament to the company's strong fundamentals. What this really suggests is that the company's ability to generate a high yield while maintaining a strong balance sheet is a key strength. This is a company that is not only providing essential services but also doing so in a way that ensures predictable and growing dividends. The company's forecast earnings growth of 10% per year over the medium term is a testament to its strong fundamentals. This is a company that is not only stable but also has the potential to grow over time. Personally, I think that Telecom Plus is the kind of income share that is very hard to overlook. Its starting yield near 7%, backed by recurring revenue and a long record of dependable payouts, already puts it in rare company. And the prospect of that rising towards 9%+ over the coming years only strengthens the case. This is a company that is not only providing essential services but also doing so in a way that ensures predictable and growing dividends. The company's ability to generate a high yield while maintaining a strong balance sheet is a key strength, and it is this that makes Telecom Plus a truly attractive investment opportunity. However, it is important to note that there are risks associated with investing in any company. The company's earnings could be affected by regulatory changes affecting household utility pricing or commissions, which could dent earnings. Another risk is increased competition that could squeeze margins. But for long-term investors who want growing passive income from a stable, essential-services business, it seems well worth a closer look. In conclusion, Telecom Plus is a company that stands out in a market where many dividends look fragile. Its ability to generate a high yield while maintaining a strong balance sheet is a key strength, and it is this that makes Telecom Plus a truly attractive investment opportunity. The company's forecast earnings growth of 10% per year over the medium term is a testament to its strong fundamentals, and the prospect of a rising dividend yield is particularly fascinating. This is a company that is not only providing essential services but also doing so in a way that ensures predictable and growing dividends. For me, Telecom Plus is the kind of income share that is very hard to overlook, and I believe that it is a company that is well worth a closer look for long-term investors.
