Opinions David Burrows
Verizon CommunicationsVZCOMMENTMar 10, 2015
David BurrowsStock price when the opinion was issued
As of Sep 11, 2026. Market Open.
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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
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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.
This has a secure cash flow and a secure dividend. The difficulty is that service providers are having a hard time getting paid for what they do. There is recent legislation in the US around “net neutrality”, which basically makes it harder for the service companies to tier their pricing to their users. Telcos, as a whole, behave much like bonds do, in that they tend to be tightly tied to interest rates. With concerns that short rates may start to rise over the next few months, there could be a headwind for some of the telcos. He would prefer pharmaceuticals that have the same characteristics of a predictable business with a good cash flow and good dividends and some growth, such as Pfizer (PFE-N)