As I continue to build and diversify my investment portfolio, I have made a strategic decision to invest in Lumen Technologies Inc. (LUMN). On August 26, 2022, I purchased 150 shares of Lumen Technologies at a price of $10.9487 per share, totaling an investment of $1,642.31.

Why Lumen Technologies?

Lumen Technologies, formerly known as CenturyLink, is a global telecommunications company providing a range of communications services, including broadband, fiber, voice, and enterprise IT solutions. Here’s why I believe this investment has potential:

1. Position in the Telecommunications Industry: Lumen Technologies is a key player in the telecommunications sector, particularly in providing high-speed internet and fiber optic services. As businesses and consumers increasingly demand faster and more reliable internet connectivity, Lumen’s fiber network is well-positioned to capitalize on this growing need.
2. Transformation and Rebranding: The company has undergone significant transformation and rebranding in recent years, shifting focus from traditional telecom services to advanced technology solutions. This shift aligns with industry trends, where there is a growing emphasis on digital infrastructure and cloud-based services.
3. Strong Dividend Yield: Lumen has historically offered a strong dividend yield, making it attractive for income-focused investors. At the time of purchase, Lumen’s dividend yield was higher than the industry average, providing a steady income stream while holding the stock.
4. Undervalued Stock: With a purchase price of $10.9487 per share, Lumen Technologies appeared to be undervalued based on its earnings potential and assets. The stock’s relatively low valuation, combined with its potential for future growth, made it an appealing buy at this price point.
5. Growth Opportunities in Fiber Expansion: Lumen is aggressively expanding its fiber network, which is a crucial growth area as more businesses and homes upgrade to fiber-optic broadband. The company’s investment in this area could lead to significant revenue growth in the coming years, particularly as demand for high-speed connectivity continues to rise.

Risks and Considerations

While I’m optimistic about the potential of Lumen Technologies, this investment is not without risks:

• Debt Levels: Lumen carries a significant amount of debt, which could impact its ability to invest in growth or weather economic downturns. However, the company has been actively managing its debt and working to improve its balance sheet.
• Competition: The telecommunications industry is highly competitive, with major players like AT&T and Verizon also vying for market share in the same sectors. Lumen will need to continue innovating and expanding its services to stay competitive.
• Regulatory Environment: As a telecommunications provider, Lumen is subject to extensive regulation, which can impact its operations and profitability. Changes in regulatory policies could affect the company’s business.

Looking Ahead

This investment in Lumen Technologies represents a calculated risk with a focus on long-term growth and income. I believe the company’s shift towards technology and fiber-optic services, combined with its strong dividend yield, presents an opportunity for both capital appreciation and regular income.

As with any investment, I will closely monitor Lumen’s performance, paying attention to its quarterly earnings, debt management efforts, and progress in expanding its fiber network. If the company can effectively execute its strategy and capitalize on industry trends, I’m optimistic that this investment will yield positive returns over time.

For now, I’m confident in the decision to add Lumen Technologies to my portfolio and look forward to tracking its progress in the months and years ahead.