Telecom Plus can handle a recession
With fears of a coming recession intensifying, it is time to consider adding shares to your portfolio of companies whose revenues hold up well when the economy sours. Even as consumer budgets are squeezed, they are not likely to cut back too much on things like light and heat, hence utility companies are good bets in recessions. Telecom Plus (LSE: TEP) sells a diverse mix of gas, electricity, fixed-line and mobile telephony, broadband, home and boiler insurance and installation to both residences and business, and has no significant foreign currency exposure. Creditworthy, higher-spending members are recruited by TEP’s network of partners who are remunerated for signing up new members and also receive a share of the revenue generated. Fair long-term pricing, discounts for bundled services, and a single monthly bill, along with other benefits, retain customers better than striving to offer the lowest introductory fixed tariffs.