Hit or miss: is the rising BT share price a potentially profitable addition to my portfolio?

first_img Andy Ross owns shares in National Grid. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Andy Ross | Friday, 26th March, 2021 | More on: BT-A Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Andy Ross Simply click below to discover how you can take advantage of this. Image source: BT Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Click here to claim your free copy of this special investing report now! 5 Stocks For Trying To Build Wealth After 50 The BT (LSE: BT.A) share price is up 45% in the last six months and 12% in a year. However, the recent outperformance of the market by BT’s shares masks its poor longer-term returns for shareholders. Over five years the shares are down 66%.So is BT turning a corner? Would I add the shares after the recent rise in the share price or does the elevated price just making investing even more risky? 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…BT share price: the plus pointsA particular area of strength for BT is, I think. EE. This is part of the wider BT Group and is a strong brand and ready for 5G. EE spent £450m on 5G spectrum, which should set it up well to charge customers for faster speeds.Also good, the dividend, which was suspended because of the pandemic, will come back — albeit at a lower level. This gives BT a chance to grow the dividend sustainably and invest in its business, which it needs to do to grow in the future.  There’s also the relationship with Ofcom, BT’s principal regulator, which seems to be improving. That’s because BT seems to be happy with the returns it can get from the regulated part of its business, especially regarding full fibre. That’s a contrast to other regulated businesses such as National Grid, which have more disputes with regulators over how much money they can make.CEO Philip Jansen is highly regarded and has a technology background, having previously been CEO at Worldpay. On the boardroom front there will be a new chairman too, after it was announced Jan du Plessis would be standing down. A new chair may help the CEO push BT forward more quickly.Perhaps most important to the value and turnaround investors who might most likely be interested in the BT share price, is that the shares are still cheap. Even after the recent share price rise, the shares still trade on a P/E of only around six.Reasons to be cautious Despite the positives, I have some concerns. The future of Openreach is uncertain, and the firm has a lot of debt, including its pension liabilities. On top of that, it’s a mature utility-like business, earning mostly regulated returns with lots of need to invest in infrastructure.Most of all though, I’m put off by its low growth prospects. That could hold back large dividend increases in the future. I suspect it will also mean share price growth will be more sluggish going forward. The rollout of 4G also wasn’t as profitable as many mobile operators hoped. There’s a risk 5G may not translate into the expected profits for EE. On balance, I’m not tempted to add BT to my portfolio. The BT share price has momentum and could rise further. But I don’t expect that it’ll add that much growth to my portfolio versus more innovative, smaller and nimbler companies that I can invest in. So I’ll look to identify those types of companies instead to maximise my returns. Our 6 ‘Best Buys Now’ Shares Hit or miss: is the rising BT share price a potentially profitable addition to my portfolio? Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. 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