Report published August 17, 2026
European Communication Services: Equity Preferences & Sector Outlook by UBS
Source and citation context
- Issuer
- UBS
- Report date
- August 17, 2026
- Analysis as of
- Not stated in source
Authors / editors: Achille Monnet (Lead Author), Delwin-Kurnia Limas (Contributing Author), Stefan-R Meyer (Contributing Author)
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
UBS CIO highlights a quality and dividend-focused strategy in European Communication Services, underpinned by declining fiber capex and 14% consensus EPS growth for 2026. Top picks include Deutsche Telekom, Telenor, and Universal Music Group, alongside high-conviction classifieds and streaming names.
Key Takeaways
- 1.European Communication Services offers a 3.5% forward dividend yield for 2026, supported by falling fiber capex rollouts and healthy EPS growth projected at 14%.
- 2.Focus remains on high-quality markets with rational competition (US, Germany, and the Nordics) and selective media/classifieds leaders with defensive network effects.
- 3.The benchmark was transitioned to MSCI Europe Communication Services, resulting in an active weighting strategy led by Deutsche Telekom, Spotify, and SMG.
Table of Contents
- European Communication Services
- Equity preferences
- Most Preferred
- Positioning and key trends
- Latest quarterly earnings summary
- Ad-hoc changes
- Sustainability considerations
- Equity selection
- About the authors
- Appendix
Report data
Most Preferred Equity Preferences List
| Metric | Estimate | Context |
|---|---|---|
| Forward Dividend Yield | 3.5% | Communications services sector forward dividend yield for 2026. |
| Consensus EPS Growth | 14% | Consensus expectations for EPS growth across the sector index in 2026. |
| Deutsche Telekom Dividend Yield | 3.7% | Expected 2026 dividend yield for Deutsche Telekom alongside a EUR 2bn share buyback. |
| Deutsche Telekom Buyback | 2 EUR billion | Share buyback program offered by Deutsche Telekom. |
Reports in this series
Equity Preferences is shown in chronological order through this edition, published on August 17, 2026.
Part of the Equity Preferences series — view all 12 editions
Looking for the latest edition? UBS Equity Preference List European Information Technology 2026 09 07 (Sep 7, 2026)
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Authors / Editors
Reported Data Context
- Forward Dividend Yield: 3.5 % (2026) · Source: UBS
- Consensus EPS Growth: 14 % (2026)
- Deutsche Telekom Dividend Yield: 3.7 % (2026) · Source: UBS
- Deutsche Telekom Buyback: 2 EUR billion (2026) · Source: UBS