Opinions John O'Connell, CFA
Verizon CommunicationsVZCOMMENTJun 14, 2017
John O'Connell, CFAStock price when the opinion was issued
As of Oct 23, 2026. Market Open.
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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%.
Gordon ReidA 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.
The dividend yield is great, and that usually forms half the return you should expect to earn. Telcos are going through radical and rampant evolution and change. The exceptionally disruptive players in the US is “creaming pricing”, and a lot of money needs to be invested to remain competitive. Cell phone penetration is very high. There is a lot of technological disruption. As long as rates stay low, this is okay, but it is not a fast-growing area.