Verizon CommunicationsVZDON'T BUYJan 29, 2016Stock 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%.
Looking at US telecoms, there is good news and bad news. The good news is that you are getting big, fat, juicy dividends. The bad news is that the stock hasn’t really gone anywhere. Prefers Canadian telcos. Although the dividend yield might be lower, on an after-tax basis it becomes more attractive.