Opinions Kash Pashootan
Verizon CommunicationsVZCOMMENTJan 16, 2015
Stock price when the opinion was issued
As of Sep 11, 2026. Market Open.
You might be interested:
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%.
Gordon Reid
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentVerizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its segments include Wireless and Wireline. The Wireless segment offers communications products and services, including wireless voice and data services and equipment sales, to consumer, business and government customers across the United States. Social media mentions are up 1300% in the past 24h.
He has chosen to get his exposure to the telecoms through the Canadian names, primarily because there is a lot less competition. Verizon has done a good job of growing the percentage of their revenues that come from wireless. A few years ago it was close to 60% and is now at 70%. Also, they acquired the remaining 45% from Vodafone (VOD-Q) which makes them very wireless heavy moving forward. With the increased sales of smart phones and the 4G technology, the average revenue per unit is going up because of the increased subscription to data. All of these are positive. Great dividend of about 4.5%. Stock is cheap trading at 10 or 11 times earnings. On paper it looks perfect, but the one challenge for them is that it is a very competitive space. There is constant cost-cutting to compete with one another.