Verizon CommunicationsVZCOMMENTNov 18, 2014Stock price when the opinion was issued
As of Oct 23, 2026. Market Open.
Starlink is a bit of a red herring -- Elon is a promoter, and this is a long-dated opportunity (if it happens at all).
Stocks overreacted to the downside. About 80% of the 1-day fall was made up in 5-6 days. Produces significant cashflow. CEO is more of an entrepreneur. Great opportunity. Yield is almost 6%.
A changed company. Older business model was volume-based, now has a bit more of an entrepreneurial spirit and is a bit more growthy. Cutting back on getting the customer at any price to a higher-quality customer. New focus is turning up in cashflow. Returning a lot of cash to investors, lots of buybacks.
Defensive play. Yield is 5.67%.
Verizon (VZ-N) or AT&T (T-N)? Verizon dividend yield is 4.25% versus AT&T's 5%. He wants to own dividend stocks that are growing their cash flow, but they don't have to be high dividend paying stocks. Wants to know that that dividend is going to increase. Feels this is a good, safe way to play certain trends going on in the US in the telcos. Also, you are clipping a very attractive yield. Both stocks are good, but focusing on growth opportunities, he feels this one has the best opportunity.